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1. (15 points) Stock Value - uneven growth. Your assistant has estimated (forecast) the dividends expected for the common stock of DD&CJ, Inc. over the
1. (15 points) Stock Value - uneven growth.
Your assistant has estimated (forecast) the dividends expected for the common stock of DD&CJ, Inc. over the next three years to be $.45, $1.72, and $3.35, respectively. Thereafter, dividend payments are estimated to grow at 2.25% per year.
You are considering the purchase of DD&CJ stock. If you require a 11.75% rate of return, what is the value per share of DD&CJ, Inc. common stock?
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