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Las Vegas Sands Incorporated is expected to grow at an exceptionally high rate over the next 3 years due to their forthcoming acquisition of the

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Las Vegas Sands Incorporated is expected to grow at an exceptionally high rate over the next 3 years due to their forthcoming acquisition of the Wynn Resorts. a. One Analyst estimates that this venture will result in a growth rate in dividends of 30% for the next 2 years before reverting back to a constant rate of 4% that is expected to continue indefinitely afterwards. Assuming this scenario is correct, if Las Vegas Sands paid a $1.80 dividend yesterday (D, $1.80) and the stock is valued according to a required rate of return of 12%, what is the value of a share of Las Vegas Sands stock today? (12 points) b. Another Analyst estimates that the venture will result in a 7% constant growth rate in dividends starting today that is expected to continue indefinitely into the future. Assuming this alternative scenario is correct, if Las Vegas Sands paid a $1.80 dividend yesterday (D,-$1.80) and the stock is valued according to a required rate of return of 12%, what is the value of a share of Las Vegas Sands stock today? (6 points)

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