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Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects

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Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects growth of 20% per year for 4 years. By then other forms will have copycat technology. competition will drive down profit margins, and the sustainable growth rate will fall to 5%. The most recent annual dividend was DIVOS1 per share Required: a. What are the expected values of (0) DIV.0 DIV. (111) DIV 3. and (IV) DIV? b. If the discount rate is 10%, what is the expected stock price 4 years from now? c. What is the stock price today? d. Find the dividend yield, DIV, / Po e. What will next year's stock price, P. be? f. What is the expected rate of return to an investor who buys the stock now and sells it in 1 year? Complete this question by entering your answers in the tabs below. Req A Req B to F What are the expected values of: (O) DIV. (1) DIV, (IHI) DIV3, and (iv) DIV 2 (Do not round intermediate calculations. Round your answers to 4 decimal places.) (0) DIVI () DIV2 (I) DIV3 (iv) DIVA RA Req B to F) Better Mousetraps has come out with an improved product and the world is beating a path to its door. As a result, the firm projects growth of 20% per year for 4 years. By then other firms will have copycat technology, competition will drive down profit margins, and the sustainable growth rate will fall to 5% The most recent annual dividend was DIV. $1 per share. Required: a. What are the expected values of. (DIV. (10 DIV 2. (1) DIV3, and (IV) DIV.? b. If the discount rate is 10%, what is the expected stock price 4 years from now? c. What is the stock price today? d. Find the dividend yield, DIV / Po e. What will next year's stock price, P, be? f. What is the expected rate of return to an investor who buys the stock now and sells it in 1 year? Complete this question by entering your answers in the tabs below. ReqA RealtoF b. If the discount rate is 10%, what is the expected stock price 4 years from now? c. What is the stock price today? d. Find the dividend yield, DIV, / Po- e. What will next year's stock price, P, be? f. What is the expected rate of return to an investor who buys the stock now and sells it in 1 year? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Show less b. Stock price 1% c. Stock price d. Dividend yield e. Stock price 1. Expected return %

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