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3. Suppose that Match Group (Match.com) expects to pay its first ever dividend of $.20 per share next year (year 1). The dividend is expected
3. Suppose that Match Group (Match.com) expects to pay its first ever dividend of $.20 per share next year (year 1). The dividend is expected to grow at rate if 20% per year for the next three years. After that dividends are expect to grow steadily at a lower rate of 9.5% thereafter. Suppose that the cost of equity is 11%. a.Find the value of the stock. Show your work, writing out the equation you are using. b. Suppose the stock is currently selling at $15. Do you recommend buying or selling the shares? Explain
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