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    Pettway Corp.

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    Pettway Corp.'s next dividend is expected to be $4. The growth rate in dividends over the next four years is forecasted at 15%. After that, Pettway's growth rate is anticipated to be equal to the industry average of 5%. If the required return is 18%, what is the current value of the stock?

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    https://brainmass.com/business/accounting-for-corporations/pettway-corp-dividend-growth-valuation-current-value-202183

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    dividend growth valuation

    Pettway Corp.'s next dividend is expected to be $4. The growth rate in dividends over the next four years is forecasted at 15%. After that, Pettway's growth rate is anticipated to be equal to the industry average of 5%. If the required return is 18%, what is the current value of the stock?

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    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the current value of the stock.

    $2.19

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