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I can't seem to figure out the proper calculations - it's not making sense! I am doing all my calculations/formulas in Excel. Nonconstant Dividend Growth

I can't seem to figure out the proper calculations - it's not making sense!

I am doing all my calculations/formulas in Excel.

Nonconstant Dividend Growth Valuation

Assume that the average firm in C&J Corporation's industry is expected to grow at a constant rate of 7% and that its dividend yield is 6%. C&J is about as risky as the average firm in the industry and just paid a dividend (D0) of $2. Analysts expect that the growth rate of dividends will be 50% during the first year (g0,1 = 50%) and 30% during the second year (g1,2 = 30%). After Year 2, dividend growth will be constant at 7%.

a) What is the required rate of return on C&J's stock?

b) What is the estimated intrinsic price per share? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number.

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