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Cayman Corporation just paid a dividend of $4.00 on its common stock. Expectations for growth in earnings are expected to be unusually high over the
Cayman Corporation just paid a dividend of $4.00 on its common stock. Expectations for growth in earnings are expected to be unusually high over the next 2 years. As such, Cayman expects its dividend to grow at a rate of 30% over the next 2 years after which it will continue to grow at a normal rate of 4% indefinitely. If stockholder's require a 8% rate of return, what is the value of Cayman common stock today? $150.13 $161.30 $175.76 $130.00
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