Question
Additional Problem 13-8 Jumbo Shrimp Oxymorons, Incorporated recently paid a dividend of $2.12 per share. The firm expects explosive growth of 20% over the next
Additional Problem 13-8\ Jumbo Shrimp Oxymorons, Incorporated recently paid a dividend of $2.12 per share. The firm expects explosive growth of 20% over the next two years. After that the firms managers expect that growth will drop to 14% for the following three years, then settle at 8% indefinitely.\ \ \ \ If investors require a rate of return of 15.40 on Jumbos stock:\ \ \ \ Required:\ \ a. What will be the dividend paid out for the next six years? (Do not round intermediate calculations. Round your answers to 4 decimal places.)\ \ \ \ \ \ \ b. What is its intrinsic value today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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