Constant annual growth rate in years four to infinity

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Lawrence industries most recent annual dividend was $1.26 per share (Dsub0=$1.26), and the firms required return is 12%. Find the market value of Lawrence's shares when dividends are expected to grow at 20% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity.

Reference no: EM131332225

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