What is the value of the stock today

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Shlifkin Corporation is expanding rapidly. It currently needs to retain all of its earnings. Thus, it does not pay any dividend in the next 5 years. However, investors expect the company to begin paying dividends of $1.2 starting at the 6th year from today. The dividend should grow rapidly at a rate of 35% per year during years 7 and 8. After year 8, the dividend should grow at a constant rate of 4%. If the risk free rate is 3% and the beta of the company is 0.9 and market risk premium is 5%, what is the value of the stock today

Reference no: EM132459397

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