The MMM Company has just paid a cash dividend of $9 per share. Investors require a 16
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The MMM Company has just paid a cash dividend of $9per share. Investors require a 16 percent return from investments such as this. The dividend is expected to grow at a steady 8 percent per year.
Question - What would the stock sell for today if the dividend was expected to grow at 20 percent per year for the next three years and then settle down to 9 percent per year indefinitely?
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