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Cranberry Medical Ltd. paid a dividend of $5.00 per share on its ordinary shares yesterday. Dividends are expected to grow at a constant rate of
Cranberry Medical Ltd. paid a dividend of $5.00 per share on its ordinary shares yesterday. Dividends are expected to grow at a constant rate of 10% for the next two years, at which point the dividends will begin to grow at a constant rate indefinitely. If the share is selling for $50 today and the required return is 15%, what is the current dividend yield? What is the growth rate of the expected annual dividend after year two?
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