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Business, 01.05.2021 17:10 uc22912

Lily is considering purchasing the common stock of Warren Industries, a rapidly growing boat manufacturer. She finds that the firm's most recent annual dividend payment was RM1.50 per share. Lily estimates that these dividends will increase at a 10% annual rate, g1, over the next 3 years because of the introduction of a hot new boat. At the end of the 3 years, she expects the firm's dividend to stay the same for the foreseeable future. Lily's required return, rₑ is 15%. Estimate the current value of Warren Industries' common stock.​

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