Question: why in the third year dividend is growth by 25%, however, the growth rate is 5%. Why in the third year growth rate is not

why in the third year dividend is growth by 25%, however, the growth rate is 5%. Why in the third year growth rate is not still 25 %

is not still 25 % 15. The Duo Growth Company just paid

15. The Duo Growth Company just paid a dividend of $1 per share. The dividend is expected to grow at a rate of 25% per year for the next three years and then to level off to 5% per year forever. You think the appropri- ate market capitalization rate is 20% per year

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