Calculate price of the stock

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ARAMITCEM dividend growth rate is12 percent for first 3 years, also expected to grow at 15 percent up to 5 years, and after that growth rate is 7 percent from year 6 to infinity and current year dividend is TK. 3.50 per share. Investors require a rate of return is 16 percent on this stock. Calculate price of the stock and justify your decision for invest in Aramit Cement. (CMP= Tk. 92)

Reference no: EM132538794

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