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4. Stripe, an online payment processing platform, is experiencing rapid growth. The company expects dividends to...

4. Stripe, an online payment processing platform, is experiencing rapid growth. The company expects dividends to grow at 35% per year for the next 3 years before leveling off at 10% forever. The required return on the company’s stock is 15%. If the dividend per share just paid was $3.25, what is the stock price?

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$ 3.25 $ 4.39 $ 5.92 $ 8.00 Stripe Dividends Cost of equity Terminal Value Net Dividends Stock price 35% 15% 10% $ 5.92 $ 175

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