Question: Suppose a firm is expected to increase dividends by 20% in the first year and by 15% in the second year. After that, dividends

Suppose a firm is expected to increase dividends by 20% in the first year and by 15% in the second year. After that, dividends will increase at a rate of 5% per year indefinitely. If the last dividend was $1 and the required return is 20%, what is the price of the stock?

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