Using the multistage ddm-the stock should be worth

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Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2.00, a dividend in year 2 of $2.50, and a dividend in year 3 of $3.00. After year 3, dividends are expected to grow at the rate of 5% per year. An appropriate required return for the stock is 12%. Using the multistage DDM, the stock should be worth __________ today.

Reference no: EM13951805

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