Question: Super Ace Inc. is growing quickly. They declared a $25 dividend that is expected to grow at 25 percent for the next two years, and

Super Ace Inc. is growing quickly. They declared a $25 dividend that is expected to grow at 25 percent for the next two years, and then the dividend is expected to grow at 15 percent in year three and four. In year five and six the dividend is expected to be $55. In year seven, the dividend will begin to grow at 15% forever. The current rate of return is 30%. What is the present value of the stock today?

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