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A stock just paid a dividend of $1.84. The dividend is expected to grow at 25.00% for two years and then grow at 3.83% therea
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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

N26 B с D | Last dividend Growth rate (1-2] Growth rate thereafter Required rate of return $1.84 25% 3.83% 12.18% Year Divide

Cell reference -

B 3 4 Last dividend Growth rate (1-2) Growth rate thereafter Required rate of return 1.84 0.25 0.0383 0.1218 5 6 Year Dividen

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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