What is the value of a share of grf

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Growing Real Fast Company (GRF) is expected to have a 25 percent growth rate for the next four years (affecting D1, D2, D3, and D4).

Beginning in year five, the growth rate is expected to drop to 7 percent per year and last indefinitely.

Required: If GRF just paid a $2.00 dividend and the appropriate discount rate is 15 percent, then what is the value of a share of GRF?

Reference no: EM131146904

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