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AAA company just paid a dividend,d0, of $1 per share. Its dividend growth rate is expected to be at 20% for the first 2 years,
AAA company just paid a dividend,d0, of $1 per share. Its dividend growth rate is expected to be at 20% for the first 2 years, after which dividends are expected to grow at a constant rate of 5% forever. The required return,rs, is 10%.
Calculate the expected dividend amounts in year 1,2, and 3
What is the best estimate of the stocks price per share at the end of year 2, p2
What is the best estimate of the stocks current price per share, p0
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