Growth rate is expected to equal the industry average

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Reference no: EM131056830

Pettway Corporation’s next annual dividend is expected to be $4. The growth rate in dividends over the following three years is forecasted at 15%. After that, Pettway’s growth rate is expected to equal the industry average of 5%. If the required return is 18%, what is the current value of the stock? Please show all work, including formula used.

Reference no: EM131056830

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