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Blue Jeans Inc. is a newly listed company on the TSX. The CEO has released a...

Blue Jeans Inc. is a newly listed company on the TSX. The CEO has released a plan for their expected dividends which will be $1.10 next year and then grow at a 20% growth rate for the following four years. After that, the dividend is expected to grow at a sustainable growth rate of 2.5% per year forever. If the expected return on comparable investments is 7%, what is the estimate for the stock price today?

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The price of stock is:

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