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Magnetic Corporation expects dividends to grow at a rate of 12.13% for the next two years. After two years, dividends are expected to grow at

Magnetic Corporation expects dividends to grow at a rate of 12.13% for the next two years. After two years, dividends are expected to grow at a constant rate of 3.50% , indefinitely. Magnetics required rate of return is 13.20% and they paid a $1.85 dividend today. Compute the following for Magnetic Corporations common stock:

  1. Dividend at the end of year 1: $
  2. Dividend at the end of year 2: $
  3. Dividend at the end of year 3: $
  4. Price of stock at the end of year 2: $
  5. Price of stock today:

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