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I need help solving the following question. Turbo Technology Computers is experiencing a period of rapid growth. Earnings and dividends are expected to grow at

I need help solving the following question.

  1. Turbo Technology Computers is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the next two years, at 13% in the third year, and at a constant rate of 6% thereafter. Turbo's last dividend was $1.15, and the required rate of return on the stock is 12%.

Complete the following calculations:

  1. Calculate the value of the stock today.
  2. Calculate P1^ and P2^.
  3. Calculate the dividend yield and capital gains yield for Years 1, 2, and 3.

I am having the most difficulty trying to solve #2. I cannot spend any more time on it or I will not have my assignments completed on time.

Thank you for your help.

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