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1. Quora has just paid a dividend of $5.00 on its stock. Its dividends are expected to grow at a 20 percent rate for the
1. Quora has just paid a dividend of $5.00 on its stock. Its dividends are expected to grow at a 20 percent rate for the next two years (Year 2023 and 2024), with the growth rate falling off to a 10 percent thereafter (from Year 2025). 1) Given the required return of 15 percent, figure out the stock price in 2022(SP0) based on both the stock price at Year 2024 and dividends at Year 2023 and 2024. 2) Additionally, Google pays a dividend of $3.60 on its preferred stock. If the required return is 12 percent, figure out the preferred stock price
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