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# Bayou Okra Farms just paid a dividend of \$3.10 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year...

Bayou Okra Farms just paid a dividend of \$3.10 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year indefinitely. Investors require a return of 13 percent for the first three years, a return of 11 percent for the next three years, and a return of 9 percent thereafter. What is the current share price?

Current share price = D1/(1+r1) + D2/(1+r1)^2+ D3/(1+r1)^3 + D4/((1+r1)^3 *(1+r2))+ D5/((1+r1)^3 *(1+r2)^2)+... View the full answer

the current... View the full answer

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