Question: Mediatek Inc. is experiencing rapid growth. Dividends are expected to grow at 30% per year for the next three years, 20% over the following year,

Mediatek Inc. is experiencing rapid growth. Dividends are expected to grow at 30% per year for the next three years, 20% over the following year, and then 6% per year indefinitely. The required return on this stock is 10%, and the most recent dividend paid was $2 per share. What will you pay for this share today?

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