What is the most investor should be willing to pay for share

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Reference no: EM132031746

Long Point Corp is launching a new product that analysts expect will propel its growth to 18% for about a year. After that everyone expects the firm to return to a more normal 5% growth rate indefinitely. Long Point recently paid an annual dividend of 3.50. Similar stocks are currently returning 9%. What is the most an investor should be willing to pay for a share of this company?

Reference no: EM132031746

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