Nonconstant growth mitts cosmetics cos stock price is 7360


Nonconstant growth Mitts Cosmetics Co.'s stock price is $73.60, and it recently paid a $1.00 dividend. This dividend is expected to grow by 30% for the next 3 years, then grow forever at a constant rate, g; and rs = 16%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. %

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Financial Management: Nonconstant growth mitts cosmetics cos stock price is 7360
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