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Nonconstant Dividend Growth Valuation
A company currently pays a dividend of $2 per share (Do-$2). It is estimated that the company's dividend will grow at a rate of 18% per year for the next 2 years, and then at a constant rate of 5% thereafter
beta of 1.2, the risk-free rate is 8.5%, and the market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent
