What is the value of the stock

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The Superior Company has fallen on hard times. Its management expects to pay no dividends for the next 4 years. However, the dividend for Year 5 will be $2.15 per share and the dividend is expected to grow at a rate of 10 percent for Years 6 & 7, then 9 percent for Year 8, and then 6 percent every year thereafter.

a. If the required return for Superior is 21 percent, what is the value of the stock?

Reference no: EM131772633

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