Question: Example 1-2: You are an equity analyst at Morgan & Morgan Inc. and your forecast of future dividend payments at General Dynamics is as follows:

 Example 1-2: You are an equity analyst at Morgan & Morgan

Example 1-2: You are an equity analyst at Morgan & Morgan Inc. and your forecast of future dividend payments at General Dynamics is as follows: Next year's dividend is expected to be $10. This dividend is then expected to grow at a rate of 20% for two years and subsequently at a lower rate of 5% forever after. The discount rate is 10%. What is the "fair value" of this stock

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