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What is terminal value of the stock

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Question

Koman company's stock just paid a dividend of $3. The company's dividend is expected to grow at a rate of 0.23 this year, 0.19, next year, 0.05 for every year after that. If Koman has a required rate of return of 0.16, what is terminal value of the stock or what is the value of the stock when it first becomes a constant growth stock?

Reference no: EM132344732

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