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Problem:

Sarepta Pharmaceuticals is expecting a growth rate of 10% for the next two years due to its new drug. Thereafter it should level to 5% growth rate forever. The last dividend paid was $1.00 per share.

Required:

Question: What price should the stock sell for it investors require 12% return.

Note: Please show the work not just the answer.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91166465

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