If the required rate of return on mjs common stock is 12


MJ LTD is expected to grow at various rates over the next five years. The company just paid a $1.00 dividend. The company expects to grow at 20% for the next two years (affecting D1 and D2), then the company expects to grow at 10% for three additional years (D3, D4, D5) after which the company expects to grow at a constant rate of 5% per year indefinitely.

Required: If the required rate of return on MJ's common stock is 12%, then what is a share of MJ's stock worth?

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Financial Management: If the required rate of return on mjs common stock is 12
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