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Magnetic Corporation expects dividends to grow at a rate of 19.94% for the next two years. After two years, dividends are expected to grow at
Magnetic Corporation expects dividends to grow at a rate of 19.94% for the next two years. After two years, dividends are expected to grow at a constant rate of 4.52%, indefinitely. Magnetic's required rate of return is 14.53% and they paid a $1.32 dividend today. Compute the following for Magnetic Corporation's common stock:
a) Dividend at end of year 1:
b) Dividend at end of year 2:
c) Dividend at end of year 3:
d) Price of stock at end of year 2:
e) Price of stock today:
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