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 2 percent per year and last indefinitely. If GRF just paid a $5.00 dividend and the appropriate discount rate is 15.4 percent, then what is the value of a share of GRF? Enter your answer to two decimal places.

Reference no: EM131523921

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