1. (12 points) Suppose a firm is expected to increase its dividend by 25% in...
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1. (12 points) Suppose a firm is expected to increase its dividend by 25% in one year and by 20% for another three years. After that, their dividend will start to increase at a rate of 10% per year indefinitely. If the last dividend paid was $1.65 and the required return is 18%, what is the current price of the stock
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