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    The Value of Stock

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    Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assuming that the discount rate is 10%. Please show calculation.

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    https://brainmass.com/business/finance/value-stock-495532

    Solution Summary

    The solution calculates the value of its current stock price.

    $2.19

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