Carnes Cosmetics Co.'s stock price is $40.18, and it recently paid a $1.75 dividend. This dividend is expected to grow by 22% for the next 3 years, then grow forever at a constant rate, g; and rs = 13%. 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.
Hence, stock expected to grow after Year 3 is 6.13%
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