Question: Using the following information, value a stock assuming you will sell the stock in 3 years; then repeat the valuation assuming you will sell the

Using the following information, value a stock assuming you will sell the stock in 3 years;

then repeat the valuation assuming you will sell the stock in 5 years time.

The stock has a required return of 10%, a growth rate of 8%, and has just paid a US$3.00 dividend.

Compare the two valuations.

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