Find out the value of the stock

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Chen One is expanding rapidly, so it retains all it's earning. However, the investors expect to receive first dividend, 5 rupees, at end of year 3. The dividend is expected to grow at rate of 20 percent next three years. After year 6, dividend would grow at a constant rate of 8 percent. If cost of equity is 10 percent. Then find out the value of the stock?

Reference no: EM132555069

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