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Pipi Storm Corporation has just paid dividends of R2.12 per share. Assume that over the next...

Pipi Storm Corporation has just paid dividends of R2.12 per share. Assume that over the next three years dividends will grow as follows: 25% in year one; 12% in year two; and 10% in year three. After that, growth is expected to level off to a constant growth rate of 7% per year. The required rate of return is 12%. Use the multistage model to calculate the intrinsic value of the share.

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