Pay for a non-constant growth stock


Problem: What is the maximum price that you would be willing to pay for a non-constant growth stock that has the following characteristics:

(a) Non-Constant Growth Rate: 20%

(b) Constant Growth Rate: 5%

(c) Dividend (Will Pay): $4.50 and

(d) Required Rate of Return: 12%

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Finance Basics: Pay for a non-constant growth stock
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