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Mathematics, 05.07.2021 14:20 xdimplesjoon

Dollar Inc. is a rapidly growing corporation. Its earnings and dividends are expected to grow at a rate of 30% for the next 2 years, then at growth rate of 20% for the following 3 years. After that, a constant growth rate of 9% is expected. Its last dividend was $ 2.45. If the required rate of return on stocks with similar risk is 22%, what is the current price of the stock?

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