Question: A stock you are evaluating is expected to experience supernormal growth in dividends of 18 percent over the next 2 years. Following this period, dividends

A stock you are evaluating is expected to experience supernormal growth in dividends of 18
percent over the next 2 years. Following this period, dividends are expected to grow at a constant
rate of 3 percent. The stock paid a dividend of $2 last year and the required rate of return on
the stock is 14 percent. Calculate the stock's fair present value.

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