What is the current value of sunlands stock

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Question - Sunland Departmental Stores management has forecasted a growth rate of 40 percent for the next two years, followed by growth rates of 25 percent and 20 percent for the following two years. It then expects growth to stabilize at a constant rate of 7.5 percent forever. The firm paid a dividend of $3.10 recently. If the required rate of return is 18 percent, what is the current value of Sunland's stock?

Reference no: EM132565587

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