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The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $3.00 per share. What is the current value of one share of this stock if the required rate of return is 8.50 percent?

Can an Excel formula be use to calculate this?

Financial Management, Finance

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