What should be current stock price

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Reference no: EM131930249

An apparel manufacturer that paid a $1.50 dividend yesterday. Analysts expect dividends to grow at a constant 20 percent per year for the next four years. From that point forward, dividends are expected to grow at a constant rate of 12 percent forever. The discount rate for a firm of this risk is 15 percent. What should be the current stock price?

Reference no: EM131930249

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