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BDS Corp. just paid a dividend of $ 2.75 per share. You expect dividends to grow 12% per year for the next 3 years, 10%
BDS Corp. just paid a dividend of $ 2.75 per share. You expect dividends to grow 12% per year for the next 3 years, 10% per year the year after that, and then grow at 4% per forever.
(a) If the required return on this stock is 13%, what is the price today? Put your answer here
b ) What is the expected price next year? Put your answer here
I have answer for (a) is 40.8315
I dont know how solve (B) please show steps
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