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    1. Business
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    3. Financial Accounting & Bookkeeping
    4. Accounting for Corporations
    5. 352432

    Current stock price

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    Jeff's Bikes last dividend was $1.00. Jeff's dividend growth rate is expected to be constant at 15% for two years. Then dividends are expected to stay at 10% indefinitely. Jeff's required return is 12%. What should Jeff's current stock price be?

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    https://brainmass.com/business/accounting-for-corporations/determining-current-stock-price-352432

    Solution Preview

    This is a case of two stage DCF valuation:
    In the first stage of growth, dividends grow at 15% per annum for two ...

    Solution Summary

    This post shows how to calculate the current stock price.

    $2.19

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