If CLF's dividend was expected to grow at 21% for the next 3 years, and then...
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If CLF's dividend was expected to grow at 21% for the next 3 years, and then return to a constant growth rate of 4.8% thereafter (post year 3), what would you model its stock price to be (again, assuming a required rate of return of 9.6% and D0 of $1.32). (10 Points) If CLF's dividend was expected to grow at 21% for the next 3 years, and then return to a constant growth rate of 4.8% thereafter (post year 3), what would you model its stock price to be (again, assuming a required rate of return of 9.6% and D0 of $1.32). (10 Points)
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