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confort ice cream has plans to pay decreasing annual dividends of 1.95,1.50 and 1.35 over the...

confort ice cream has plans to pay decreasing annual dividends of 1.95,1.50 and 1.35 over the next three years respectively after that the firm will increase the dividend by 3 percent each year what is the value of this stock today at a discount rate of 9 percent?
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Answer #1

Expected to pay next dividends : D1 = $1.95, D2 = $1.50 and D3 = $1.35 Growth rate, g = 3% Discount rate, RR = 9% D4 = D3*(1+

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