What is the most you would pay for the stock now

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Question - Grow On, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $3.70. You believe that dividends will grow at a rate of 19% per year for years one and two, 13% per year for years three and four, and then at a rate of 6% per year thereafter. If you expect an annual rate of return of 15% on this investment, what is the most you would pay for the stock now?

Reference no: EM133043008

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