What should be the current price of the company stock

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Reference no: EM132010359

Rainbow Industries, Inc. just paid a dividend of $1 per share of common stock. Analysts expect the company’s dividend to grow 60% the next two years, and then settle into a constant growth rate of 8%. The required rate of return on the company’s stock is 12%. QUESTION: What should be the current price of the company’s stock? Show all these calculations:

Reference no: EM132010359

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