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Micro Corp. just paid dividends of $ 2 per share. Assume that over the next three years dividends will grow as follows, 5 percent next
Micro Corp. just paid dividends of $ per share. Assume that over the next three years dividends will grow as follows, percent next year, percent in year two, and percent in year After that growth is expected to level off to a constant growth rate of percent per year. The required rate of return is percent. What is the expected price of the stock today? What is the expected price at the end of the second year?
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