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Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growth rate
Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growth rate falling off to a constant 6.3 percent thereafter. The required return is 15 percent and the company just paid a dividend of $2.90. Requirement 1: What are the dividends each year for the next four years? $ Year 1 $ Year 2 $ Year 3 $ $ Year 4 Requirement 2: What is the share price in three years? Share price in 3 years $ Requirement 3: What is the current share price? Current share price $
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