After that dividends are expected to grow at a 5 rate


Alpha Industries plans on reinvesting heavily in itself for the next few years. The company plans to pay a $6 dividend next year, which will decrease by 3% for two years. After that, dividends are expected to grow at a 5% rate, indefinitely. If investors require a 10% return, what is the value of Alpha stock?

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Finance Basics: After that dividends are expected to grow at a 5 rate
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