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Magnetic Corporation expects dividends to grow at a rate of 17.17% for the next two years. After two years, dividends are expected to grow at
Magnetic Corporation expects dividends to grow at a rate of 17.17% for the next two years. After two years, dividends are expected to grow at a constant rate of 6.99% , indefinitely. Magnetics required rate of return is 13.35% and they paid a $2.37 dividend today. Compute the following for Magnetic Corporations common stock:
Dividend at the end of year 1: $
Dividend at the end of year 2: $
Dividend at the end of year 3: $
Price of stock at the end of year 2: $
Price of stock today: $
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