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15 Q4) Magnetic Corporation expects dividends to grow at a rate of 12.77% for the next two years. After two years, dividends are expected to
15 Q4) Magnetic Corporation expects dividends to grow at a rate of 12.77% for the next two years. After two years, dividends are expected to grow at a constant rate of 5.17%, indefinitely. Magnetic's required rate of return is 14.57% and they paid a $1.06 dividend today. Compute the following for Magnetic Corporation's common stock: 16 17 18 19 a) Dividend at end of year 1 :(0.5 points) b) Dividend at end of year 2 : (0.5 points) c) Dividend at end of year 3 : (0.5 points) d) Price of stock at end of year 2 : (1 point) e) Price of stock today: (1 point) 20 21 22
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