What is the value of marquezs shares

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Amy is analyzing the shares of Marquez Company. The Company currently pays a dividend of $2.50. She believes the company has a new product that will result in supernormal growth of 20% for two years. Once the market for this product is saturated, she expects the Marquez’s growth will fall to 3%, which is equal to the level of world economic growth. Amy determines that the required return on Marquez should be 12%. What is the value of Marquez’s shares?

Reference no: EM131322572

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