What is the value of the stock

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Question - Austral shipbuilding company has been growing at a phenomenal rate of 39 per cent per year because of its rapid expansion and explosive sales in the global market. However, you believe this growth rate will last for 3 more years and will then drop to 10 per cent per year. If the growth rate then remains at 10 per cent indefinitely, what is the value of the stock? The dividend just paid was $6, and the required return is 23 per cent.

Reference no: EM133156127

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