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Green Tree Corporation is paying a dividend of $4 today. Itexpects dividends to grow at 25 percent for the next three yearsand to stabilize at 10 percent per year thereafter. If the requiredrate of return of this corporation is 15 percent, what is thecurrent price of this corporation's stock? What percentage of thecurrent stock price is due to the dividends in the first threeyears? What percentage of the current stock price is due to thedividends from Year 4 onwards?
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