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I can't seem to figure this out. I attached my work. Thanks for your help! ompetency Assessment Question 9 of 10 0/4 = Blossom Infotech
I can't seem to figure this out. I attached my work. Thanks for your help!
ompetency Assessment Question 9 of 10 0/4 = Blossom Infotech is a fast-growing communications company. The company did not pay a dividend last year and is not expected to do so for the next two years. Last year the company's growth accelerated, and management expects to grow the business at a rate of 45 percent for the next five years before growth slows to a more stable rate of 7 percent. In the third year, management has forecasted a dividend payment of $ 1.20. Dividends will grow with the company thereafter. (a1) X Your answer is incorrect. Calculate the value of the company's stock at the end of its rapid growth period (ie, at the end of five years). The required rate of return for such stocks is 17 percent. (Round Intermediate calculations to 3 decimal places, eg. 15.257 and final answer to 2 decimal ploces eg. 15.25) Value of stock $ 16.14 han File Edit View Insert Format Data Tools Add-ons Help Last edit was 3 days ago 100% $ % .0 .00 123- Default (Ari. 10 -BISA .. fx =(F35/(1+F43))+CF36/(1+F43)^2)+(F37/(1+F 43)^3)+(F38/(1+F43)*4)+(F39/(1+F43)*5)+(E44/(1+F435) v - A B D E F G H Supemormal Dividend Growth Stock Valuation 15.14178647 D1 02 D3 D4 D5 D6 5 Year Growth Rato 5+ Year Growth Rate Rate of Return P5 0 0 1.2 174 2.52 2.70 0.45 0.07 0.17 26.9961 Sheet1 Step by Step Solution
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