Jim bob industries has been growing at a incredible rate of


Jim Bob Industries has been growing at a incredible rate of 40 percent per year because of its rapid expansion and explosive sales. You believe that this growth rate will last for three more years, and that the rate will then drop to 20 percent per year. If the growth rate then remains at 20 percent indefinitely, what is the total value of the stock? Total dividends just paid were $7 per share, and the required return is 20 percent.

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