Please show all steps and double check your work! Thank you.
D1=(4*1.18)=4.72
D2=(4.72*1.18)=5.5696
D3=(5.5696*1.18)=6.572128
Value after year 3=(D3*Growth rate)/(Required rate-Growth rate)
=(6.572128*1.055)/(0.0894-0.055)
=$201.5579953
Hence current share price=Future dividends and value*Present value of discounting factor(rate%,time period)
=4.72/1.0894+5.5696/1.0894^2+6.572128/1.0894^3+201.5579953/1.0894^3
=$170.01(Approx).
Please show all steps and double check your work! Thank you. Question7 1 pts BlueCorp. is...
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