Constant rate is the stock expected to grow after year three

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Arnes Cosmetics Co.'s stock price is $56.52, and it recently paid a $1.50 dividend. This dividend is expected to grow by 17% for the next 3 years, then grow forever at a constant rate, g; and rs = 14%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131610607

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