If the companys required rate of return on equity is 10


Mountain Star Corp. has just distributed a dividend of $1 per share last year. It is expected to have a dividend growth of 20% for the next two years, and after that the long term growth rate is back to 8%. If the company's required rate of return on equity is 10%, what is the current intrinsic value of its stock?

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Financial Management: If the companys required rate of return on equity is 10
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