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Martin Office Supplies paid a $ 3 dividend last year. The dividend is expected to grow at a constant rate of 5 percent over the
Martin Office Supplies paid a $ dividend last year. The dividend is expected to grow at a constant rate of percent over the next four years. The required rate of return is percent this will also serve as the discount rate in this problem
a Compute the anticipated value of the dividends for the next four years. Do not round intermediate calculations. Round your final answers to decimal places.
b Calculate the present value of each of the anticipated dividends at a discount rate of percent. Do not round intermediate calculations. Round your final answers to decimal places.
c Compute the price of the stock at the end of the fourth year PDo not round intermediate calculations. Round your final answer to decimal places.
d Calculate the present value of the year stock price at a discount rate of percent. Do not round intermediate calculations. Round your final answer to decimal places.
e Compute the current value of the stock. Do not round intermediate calculations. Round your final answer to decimal places.
f Use the formula given below to show that it will provide approximately the same answer as part eDo not round intermediate calculations. Round your final answer to decimal places.
g If current EPS were equal to $ and the PE ratio is higher than the industry average of what would the stock price beDo not round intermediate calculations. Round your final answer to decimal places.
h By what dollar amount is the stock price in part g different from the stock price in part fDo not round intermediate calculations. Round your final answer to decimal places.
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