The equity cost of capital for the firm

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Analysts expect that dividends of Art Vandelay Industries will grow rapidly at 15% for the first four years and then at a constant rate of 3% forever after that. If the company paid a dividend of $3 last year and the equity cost of capital for the firm is 12%, what is the maximum price you would be willing to pay for the stock?

Reference no: EM131933648

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