Which dividends are expected to grow at rate

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The last dividend paid by Acme, Inc. was $3.00. Acme's growth rate is expected to be 25% percent for three years, after which dividends are expected to grow at a rate of 5 percent forever. The company’s stockholders require a rate of return on equity (rs) of 11 percent. What is the current price of the stock?

Reference no: EM131087762

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