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Magnetic Corporation expects dividends to grow at a rate of 14.50% for the next two years.After two years dividends are expected to grow at a
Magnetic Corporation expects dividends to grow at a rate of 14.50% for the next two years.After two years dividends are expected to grow at a constant rate of 03.10% indefinitely.Magnetic's required rate of return is 09.74% and they paid a $1.98 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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