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Catalina Corp. just paid a $5.00 dividend yesterday to its shareholders. In the annual meeting, the exec indicated they are targeting to have a 15%
Catalina Corp. just paid a $5.00 dividend yesterday to its shareholders. In the annual meeting, the exec indicated they are targeting to have a 15% growth in dividend for the next 5 years, after which it is expected to grow forever at sustained annual rate of 4% per year. You expect to earn 19% total return on this stock.
a. Whats expected sales price of the stock at the end of year 8?
b. What is value of the stock today?
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