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Company "A" just paid a $1.30 dividend and analysts expect cash flows and dividends of the firm to grow at 20 percent for the next two years, 15 percent for the following two years and 6 percent annually afterwards. Stocks of this risk have required return of 12 percent. What should the current price of a share of company "A' stock be today?

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Financial Management, Finance

Category:- Financial Management
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