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Estimate the horizon value p2 of this stock by using the

Assume that D0 = $2, the dividend is expected to grow at 10% for the first year and at 6% for the second year, and then it will grow at a constant rate of 4% after the second year. Also, the RRR of this stock is 10%

a) Estimate the horizon value (P2) of this stock by using the constant dividend growth model.

b) Estimate the present value of this stock by using the supernormal (nonconstant) growth model.

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Basic Statistics: Estimate the horizon value p2 of this stock by using the

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Basic Statistics: Estimate the horizon value p2 of this stock by using the

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