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What is the stock value at the horizon date

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Question: Calculator Corp recently paid a dividend of $1.5 per share. It expects to have non-constant growth of 20% a year for 2 years followed by a constant growth rate of 4% a year thereafter. The stock's required rate of return is 11%.

A) What is the stock's value at the horizon date (when it begins constant growth)?

B) What is the stock's intrinsic value today?

Reference no: EM132758935

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