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33. A firm will pay a dividend of $0 one year from today and $5.00 two years from today (that is, D = $0 and

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33. A firm will pay a dividend of $0 one year from today and $5.00 two years from today (that is, D = $0 and D2 = 5.00). Thereafter, the dividend is expected to grow at a constant rate forever. The price of this stock today is $100 and the required rate of return on the stock is 10%. What is the expected constant growth rate of the dividend stream from year 2 to infinity? 34. Malcolm Manufacturing, Inc. just paid a $2.00 annual dividend (that is, D. = 2.00). There will be no dividend payment for the next two years (i.e., at t - 1 and t - 2). In year three (t - 3), the dividend is expected to be $5.00. The dividend will then grow at 10% annually for the next 3 years (i.e., at t = 4, t - 5 and t - 6) and thereafter (i.e., beginning at t - 7) dividends will grow at a rate of 3% annually forever. Assuming a required return of 14%, what is the current price of the stock

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