Carnes Cosmetics Co s stock price is $ 5 3 , and it recently paid a $

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Question:

Carnes Cosmetics Co

s stock price is $

53,

and it recently paid a $

2.25

dividend. This dividend is expected to grow by

17 %

for the next

3

years, then grow forever at a constant rate, g; and rs

= 16 % .

At what constant rate is the stock expected to grow after Year

3 ?

Do not round intermediate calculations. Round your answer to two decimal places.

Posted Date: May 10, 2024 01:18 AM

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Carnes Cosmetics Co s stock price is $ 5 3 , and it recently paid a $

Question:

Expert Answer:

To find the constant growth rate of the stock after Year 3 we can use the Gordon Growth Mod... View the full answer

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