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#1 #2 MaCcudden Corp. is a new company that is growing rapidly. The company just paid a dividend of $2.50. The expecations for the future
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MaCcudden Corp. is a new company that is growing rapidly. The company just paid a dividend of $2.50. The expecations for the future are that the company's dividends will increase by 20% over the next year, and 15% the second year. After that the company is expected to grow at a steady rate of 3% indefinetly. The discount rate for the company is 18%. What is the value of the company? MaCcudden Corp. is a new company that is growing rapidly. The company just paid a dividend of $2.50. The expecations for the future ar that the company's dividends will increase by 20% over the next year, and 15% the second year. After that the company is expected to grow at a steady rate of 3% indefinetly. The discount rate for the company is 18%. If you think about the value of the company due to the high-growth period and then the amount added once the growth slows down, how much of the value of the stock is made up of the dividends once the company's growth slows downStep by Step Solution
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