Required rate of return for the stock

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Reference no: EM131957051

The Mintcoin Inc has just paid an annual dividend of 40 cents per share. You forecast that dividends of Mintcoin Inc will grow at the rate of 25% a year over the next four-year period. From year five on, you expect the subsequent growth rate of dividends to decrease to 8%, the industry average.

If the required rate of return for the stock is 12%, calculate its price.

Reference no: EM131957051

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