Variable growtha fast-growing firm recently paid a dividend, Ask an Expert

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Variable Growth

A fast-growing firm recently paid a dividend of $0.65 per share. The dividend is expected to increase at a 20 percent rate for the next four years. Afterwards, a more stable 10 percent growth rate can be assumed.

If an 11.5 percent discount rate is appropriate for this stock, what is its value? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92169046

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