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Magnetic Corporation expects dividends to grow at a rate of 16.40% for the next two years. After two years dividends are expected to grow at
Magnetic Corporation expects dividends to grow at a rate of 16.40% for the next two years. After two years dividends are expected to grow at a constant rate of 06.40% indefinitely. Magnetics required rate of return is 12.98% and they paid a $2.06 dividend today. Find the value of Magnetic Corporations 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 the end of Year 2:
e) Price of stock today:
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