How do you find rs in a non constant growth problem for, Ask an Expert

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How do you find rs in a non constant growth problem for stock valuation? You are given D0=$2, g=20% for 2 years and g=7% thereafter, Beta of 1.2 rf=7.5% and RPm=4%. You are ultimately looking for the price but I am stuck at understanding how rs is equal to .123 or 12.3%.

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Financial Management, Finance

Category:- Financial Management
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