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Mitts Cosmetics Co

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Mitts Cosmetics Co.'s stock price is $58.88, and it recently paid a $2 dividend. This dividend is expected to grow by 25% for the next 3 years, and then grow forever at a constant rate, g, and the required return on the stock is 12%. At what constant rate is the stock expected to grow after Year 3?

[Hint: you are recommended to draw a timeline to solve this problem]