Carnes Cosmetics Co.'s stock price is $74.50, and it recently paid a $1.50 dividend. This dividend is expected to grow by 19% for the next 3 years, then grow forever at a constant rate, g; and rs =14%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

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Tod ThielLv2

28 Sep 2019

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1- DPS calculation

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