What constant rate is stock expected to grow after year

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Reference no: EM131902268

Carnes Cosmetics Co.'s stock price is $71.16, and it recently paid a $1.75 dividend. This dividend is expected to grow by 18% for the next 3 years, then grow forever at a constant rate, g; and rs = 16%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations. %

Reference no: EM131902268

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