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Jumbo Shrimp Oxymorons, Inc. recently paid a dividend of $2.00 per share. The firm expects explosive growth of 20% over the next two years. After

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Jumbo Shrimp Oxymorons, Inc. recently paid a dividend of $2.00 per share. The firm expects explosive growth of 20% over the next two years. After that the firm's managers expect that growth will drop to 14% for the following three years, then settle at 8% indefinitely. If investors require a rate of return of 14.20% on Jumbo's stock: a. What will be the dividend paid out for the next six years? (Round your answers to 4 decimal places.) D1 = D2 = D3 = D4 D5 = DO b. What is its intrinsic value today? (Round your answer to 2 decimal places.) Intrinsic value Dishwasher's Delights plows back 69.00% of its earnings to take on projects that earn the firm a rate of return of 13.00%. Dishwasher's stockholders require a return of 12.50% on their common stock. Earnings per share are expected to be $4.00 next year. a. What is the expected growth rate for Dishwasher's common stock? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Growth rate 8.97% b. What is the expected dividend next year? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Dividend c. What is the intrinsic value of Dishwasher's stock? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value d. If Dishwasher's management chose to pay out all earnings as dividends, what would be the intrinsic value of its stock? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value e. What is the present value of growth opportunities for Dishwasher's Delights? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) PVGO

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