Question: Feinsteins Breweries currently (d 0 ) pays a $1.00 common stock dividend. Dividends have been recently growing at a 10 percent annual rate and are

  1. Feinsteins Breweries currently (d0) pays a $1.00 common stock dividend. Dividends have been recently growing at a 10 percent annual rate and are expected to continue growing at this rate for the next three years. Thereafter the growth rate is expected to be 5% for the foreseeable future. What is the current value of Feinsteins Breweries common stock to an investor requiring a 13% rate of return?

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