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11: e 2: Question 32 (5 points) The common stock of Frank Construction paid $1.5 dividend (D) currently. Its dividend is expected to grow at

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11: e 2: Question 32 (5 points) The common stock of Frank Construction paid $1.5 dividend (D) currently. Its dividend is expected to grow at 30% per year for the next 2 years. After that, the dividend will grow at a rate of 7.5% forever. The company has a required return on stock equal to 14.5%. (To earn credit, you MUST SHOW YOUR WORK) (1) What is the value of its dividend to be paid in year 1 (D.)? (2) What is the value of its dividend to be paid in year 2 (D2)? (3) What will be the stock's price in year 2 (the terminal year of its fast growth) (that is P2)? (4) What should be the stock's price TODAY? (P) le 3: e 4: e 5

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