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What is the value of a share of this stock

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Reference no: EM133157461

Question - Consider the valuation of a stock that has a current dividend of $1.00 per share. Dividends are expected to grow at a rate of 15 percent for the next five years. Following that, the dividends are expected to grow at a rate of 10% for five years. After ten years, the dividends are expected to grow at a rate of 5% per year, forever. If the required rate of return is 10%, what is the value of a share of this stock?

Reference no: EM133157461

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