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Magnetic Corporation expects dividends to grow at a rate of 15.10% for the next two years. After two years dividends are expected to grow at
Magnetic Corporation expects dividends to grow at a rate of 15.10% for the next two years. After two years dividends are expected to grow at a constant rate of 05.90% indefinitely. Magnetic's required rate of return 12.55% and they paid a $1.88 dividend today. Find the value of Magnetic Corporation's common stock per share by computing:
a) Dividend at the end of Year 1
b) Dividend at the end of Year 2
c) Dividend at the end of Year 3
d) Price of stock at end of year 2
e) Price of stock today
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