Nonconstant growthcarnes cosmetics cos stock price is 6719, Ask an Expert

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NONCONSTANT GROWTH

Carnes Cosmetics Co.'s stock price is $67.19, and it recently paid a $3.00 dividend. This dividend is expected to grow by 20% for the next 3 years, then grow forever at a constant rate, g; and rs = 12%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

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Financial Management, Finance

Category:- Financial Management
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