What is the expected price of the stock in given case

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Reference no: EM131997199

Question: Mega stock is expected to grow at 11% in year 1 and year 2, 10% in year 3, 8 % in year 4 and then grow at a constant rate of 4% in the years that follow. The required rate of return (Rs) equals 7%. The company will pay a Dividend at the end of year 1 (D1) equal to 1.25. What is the expected price of this stock? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131997199

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