Homework Answers
Using Multistage Growth Model,
Stock Price = 13(1.15/1.19) + 13(1.15/1.19)2 + 13(1.15/1.19)3 + 13(1.15)3(1.07)/(0.19 - 0.07)(1.19)3
Stock Price = 12.56 + 12.14 + 11.73 + 104.62
Stock Price = $141
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