Question: You are evaluating a stock that is expected to experience supernormal growth in dividends of 16% over the next two years Following this period, dividends

You are evaluating a stock that is expected to experience supernormal growth in dividends of 16% over the next two years Following this period, dividends are expected to grow a constant rate of 3%. The stock paid a dividend of $3 Last year and the required return on the stock is 13% . What is the fair present value of thin stock?

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