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1. Black Chips paid a $1 per share dividend yesterday. You expect the dividend to grow at a rate of 4% per year. a. What
1. Black Chips paid a $1 per share dividend yesterday. You expect the dividend to grow at a rate of 4% per year. a. What is the expected dividend in each of the next 3 years? b. If the discounted rate for the stock is 12%, at what price will the stock sell? c. What is the expected stock price 3 years from now? d. If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments?
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