Question: Question 3. Company BMI will experience a supernormal growth rate of 15% in the next two years. The growth rate will then level off to

Question 3. Company BMI will experience a supernormal growth rate of

Question 3. Company BMI will experience a supernormal growth rate of 15% in the next two years. The growth rate will then level off to 5% from year 3 and beyond. The most recent dividend payment was $2.00 and the required rate of return for XYZ stock is 10%. What is the intrinsic value of the BMI stock? 70

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