Question: A stock you are evaluating is expected to experience supernormal growth in dividends of 9 percent over the next 5 years. Following this period, dividends

A stock you are evaluating is expected to experience supernormal growth

A stock you are evaluating is expected to experience supernormal growth in dividends of 9 percent over the next 5 years. Following this period, dividends are expected to grow at a constant rate of 3 percent. The stock paid a dividend of $4.50 last year and the required rate of return on the stock is 10 percent. Calculate the stock's fair present value

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