Herrs Computer Chips Inc. is experiencing a period of rapid growth. Earnings and dividends are...
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- Herrs Computer Chips Inc. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 12% during the next 2 years, at 10% in the third year, and at a constant rate of 6% thereafter. Wises last dividend was $2.25, and the required rate of return on the stock is 14%. Calculate the value of the stock today.
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