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A company issued a dividend of $1.00 (D 0 ) this year, which is expected to grow at 15% per year for the next 2
A company issued a dividend of $1.00 (D0) this year, which is expected to grow at 15% per year for the next 2 years and 5% per year thereafter. The required rate of return is 15% per year. Use the two-growth dividend discount model to complete the following table.
Item | Value |
N | |
rs | % |
g1 | % |
g2 | % |
D0 | $1.00 |
D1 | $ |
D2 | $ |
D3 | $ |
P0 | $ |
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