Question: 3. (8 points) A firm is expected to increase dividends by 20% in the first year, by 15% in the second year, and by 5%

3. (8 points) A firm is expected to increase dividends by 20% in the first year, by 15% in the second year, and by 5% in the third year. After that, dividends will decrease at a rate of 2% per year indefinitely. If the last dividend paid was $1 and the required return is 20%, what is the price of the stock

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