It is expected that the dividend growth rate of Ryder Corporation will be 24% per year for
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It is expected that the dividend growth rate of Ryder Corporation will be 24% per year for 3 years. Ryder will maintain a constant dividend growth rate of 5.4% from year four on. Ryder paid a dividend of $6.4 per share last year. The company’s cost of equity is 15%. What is the terminal value of the stock at the end of year 3?
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