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how do you do this in the financial calculator 28. Malcolm Manufacturing, Inc. just paid a $2.00 annual dividend (that is, Do = 2.00). There
how do you do this in the financial calculator
28. Malcolm Manufacturing, Inc. just paid a $2.00 annual dividend (that is, Do = 2.00). There will be no dividend payment for the next two years (i.e., at t = 1 and t = 2). In year three (t = 3), the dividend is expected to be $5.00. The dividend will then grow at 10% annually for the next 3 years (i.e., at t = 4, t = 5 and t = 6) and thereafter (i.e., beginning at t = 7) dividends will grow at a rate of 3% annually forever. Assuming a required return of 14%, what is the current price of the stockStep by Step Solution
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