Question: 1 ) Red River Bikes, Inc. is undergoing a period of rapid expansion. The firm anticipates its dividends will increase at a rate of 1

1) Red River Bikes, Inc. is undergoing a period of rapid expansion. The firm anticipates its dividends will increase at a rate of 18% annually for the next 11 years, after which the growth rate will settle at a constant 4% indefinitely. Investors require an 11% return on the stock. If the most recent dividend paid was $1.50 per share, what is the current value of the stock?

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