### What is the value of a share of stephens stock

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##### Reference no: EM131524002

Stephens, Inc. is a rapidly growing firm that just paid it first dividend of \$1.00 per share. Stephens expects earnings and dividends to grow at an 18% annual rate for the next year, 12% for the following year and then leveling off to the industry average of 6%. The required rate of return for stock of similar risk is 10%. What is the value of a share of Stephens’ stock?

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