What is the fair value of the company stock price

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Reference no: EM132031303

Three-Stage Growth: The stock of Cubs Corporation is expected to pay $2 dividends per share next year. Its required rate of return on equity is 10%. Dividends are expected to grow at 10% per year for years 2 and 3, and then at 5% per year for years 4 and 5, and then slow down to a steady long-term growth rate of 3% for year 6 and beyond. What is the fair value of the company’s stock price?

Reference no: EM132031303

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