Question: Management has recently announced that expected dividends for the next three years will be as follows: YEARDIVIDEND 11.2 21.6 32.5 After year 3, dividends are

Management has recently announced that expected dividends for the next three years will be as follows:

YEARDIVIDEND

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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