Question: please explain and show how you got to your answer Assume that the average firm in your company's industry has a required rate of return

 please explain and show how you got to your answer Assume

please explain and show how you got to your answer

Assume that the average firm in your company's industry has a required rate of return of 10%. Your company is about as risky as the average firm in the industry, but it has just successfully completed some R\&D work which leads you to expect that its earnings and dividends will grow at a rate of 40% this year and 25% the following year, after which growth should match the 6% annual industry average growth rate. The last dividend paid (D0) was $1.2. What is the fair value of your firm's stock at time 0

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