Question: You are evaluating a stock that is expected to experience supernormal growth in dividends of 15% over the next two years. Following this period, dividends

You are evaluating a stock that is expected to experience supernormal growth in dividends of 15% over the next two years. Following this period, dividends are expected to grow at a constant rale of 4%. The stock paid a dividend of $2 last year and the required return on the stock is 13%. What is the fair present value of this stock?

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