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Question: Calculate the current price of a stock given the following information:

The required rate of return of the stock is 7%. From time period 0 to the end of the second period, the growth rate is 20%. From the beginning of time period 3 to the beginning of time period 4, the growth rate is 5%. From the beginning of time period 4, the dividend grows 3% in perpetuity. D0 = $3.00

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Category:- Basic Finance
Reference No.:- M92789152

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