A fast-growing firm recently paid a dividend of 070 per


A fast-growing firm recently paid a dividend of $0.70 per share. The dividend is expected to increase at a 25 percent rate for the next four years. Afterwards, a more stable 13 percent growth rate can be assumed.

If a 14.5 percent discount rate is appropriate for this stock, what is its value?

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Financial Management: A fast-growing firm recently paid a dividend of 070 per
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