A fast growing firm recently paid a dividend of $0.40 per share. The dividend is expected expected to increase ata 25 percent rate for the next four years. Afterwards, a more stable 11 percent growth rate can be assumed. If a 12.5 percent discount rate is appropriate for this stock, calculate the following: i) By applying Two-stage Growth Valuation model, what is the Terminal value? ii) What is the value of this stock?

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