A fast-growing firm recently paid a dividend of 090 per


Question: A fast-growing firm recently paid a dividend of $0.90 per share. The dividend is expected to increase at a 20 percent rate for the next four years. Afterwards, a more stable 13 percent growth rate can be assumed. If a 14.5 percent discount rate is appropriate for this stock, what is its value?

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Finance Basics: A fast-growing firm recently paid a dividend of 090 per
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