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Compute expected dividend for years 3 and 4 please. Ted McKay has just bought the common stock of Blossom Corp. Management of Blossom expects the
Compute expected dividend for years 3 and 4 please.
Ted McKay has just bought the common stock of Blossom Corp. Management of Blossom expects the company expects to grow at the following rates for the next three years: 30 percent, 25 percent, and 15 percent. Last year the company paid a dividend of $2.00. Assume a required rate of return of 10 percent (21) Your answer is correct Compute the expected dividend for the first year. (Round answer to 2 decimal places, eg. 15.25) D 2.60 Compute the expected dividend for the second year. (Round answer to 2 decimal places, eg. 15.25.) D2 $ $ 3.25 (a3) Compute the expected dividend for the third year. (Round answer to 2 decimal places, eg. 15.25.) D $ Step by Step Solution
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