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CFA Level I Equity Valuation: Concepts and Basic Tools question

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Equity Valuation: Concepts and Basic Tools sample question

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Equity Investments

Equity Valuation: Concepts and Basic Tools

A branded footwear company just paid an annual dividend of USD 3.00 per share. An analyst forecasts dividends to grow at 12.0% per year for the next two years and at 3.0% per year thereafter. The required return on the shares is 10.0%. Using a two-stage dividend discount model, the intrinsic value per share today is closest to:

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