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What value should be assigned to the stock

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Problem 1: Suppose you are attempting to value a company's stock. The company just paid a dividend of $3.00. You expect the dividends to grows at a 20 percent rate for the next three years and then level-off to a 12 percent growth rate thereafter. Using the dividend discount model, what value should be assigned to the stock assuming a 15 percent discount rate?

Reference no: EM133002645

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