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etter Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects

etter Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects growth of 20% per year for four years. By then, other firms will have copycat technology, competition will drive down profit margins, and the sustainable growth rate will fall to 5%. The most recent annual dividend was DIV0= $1 per share. (LO7-2)
a. What are the expected values of (i) DIV1,(ii) DIV2,(iii) DIV3, and (iv) DIV4?
b. What is the expected stock price four years from now? The discount rate is 10%.
c. What is the stock price today?

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