Question: Management has recently announced that expected dividends for the next three years will be as follows: YEAR DIVIDEND 1 1 . 2 2 1 .

Management has recently announced that expected dividends for the next three years will be as follows:
YEAR DIVIDEND
11.2
21.6
32.5
After year 3, dividends are expected to grow at the rate of 3.5% per year. An appropriate required return for the stock is 13%. What should be the stock worth today?

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