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As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the company's

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As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the company's expected growth rate to increase or decrease, thereby affecting the results of the valuation model, For companies in such situations, you would refer to the nonconstant growth model for the valuation of the company's stock. Consider the case of Green Caterpillar Garden Supplies inc:- Green Caterpilar Garden Supplies inc (GCGS) just paid a dividend of 53.12 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12.00% over the next year, After the next year, though, Green Caterpillar's dividend is expected to grow at a constant rate of 2.40% per year. Complete the following table, sssuming that the market is in equilbrium, and: Note; Do not found internied ate calculatons. Th 08: Assignment - Corporate Valuation and Stock Valuation constant rate of 2.40% per year. Complete the following table, assuming that the market is in equilibrium, and: Note: Do not round intermediate calculations. Which of the following most dosely approximates the expected dividend yield for Green Caterpillar's stock today? 3.65% 4.45% 4.56W 4.76%

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