What is the equilibrium price

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1. What is the equilibrium price (intrinsic value) of a stock that just paid dividends of $1.75 per share,dividends are expected to grow at a 15% per year for 2 years then at 10% per year for another two years and then at 5% per year forever? The discount rate for the company is 12%. What would the intrinsic value be if instead of dividends growing at 5% after four years, the dividends stay constant from year 4 onwards forever?

Reference no: EM131444171

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