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Memphic Memphic
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6 years ago
MJ LTD is expected to grow at various rates over the next five years.  The company just paid a $1.00 dividend.  The company expects to grow at 20% for the next two years (effecting D1 and D2), then the company expects to grow at 10% for three additional years (D3, D4, D5) after which the company expects to grow at a constant rate of 5% per year indefinitely.  If the required rate of return on MJ's common stock is 12%, then what is a share of MJ's stock worth?
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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anicidanicid
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Beaut.
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Thank you
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