At what constant rate is the stock expected to grow after


Carnes Cosmetics Co.'s stock price is $38.98, and it recently paid a $2.25 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, g; and rs = 15%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

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Financial Management: At what constant rate is the stock expected to grow after
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