If a 6 percent discount rate is appropriate for this stock


A fast-growing firm recently paid a dividend of $0.35 per share. The dividend is expected to increase at a 10 percent rate for the next three years. Afterwards, a more stable 5 percent growth rate can be assumed. If a 6 percent discount rate is appropriate for this stock, what is its value today? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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Financial Management: If a 6 percent discount rate is appropriate for this stock
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