[Solved] NEEDS TO BE SOLVED IN EXCEL! Suppose a fi

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NEEDS TO BE SOLVED IN EXCEL! Suppose a firm is expected to increase dividends by 2 0 % in one year and by 1 5

NEEDS TO BE SOLVED IN EXCEL!

Suppose a firm is expected to increase dividends by

20 %

in one year and by

15 %

in two years. After that, dividends will increase at a rate of

5 %

per year indefinitely. If the last dividend was $

1

and the required return is

20 %,

what is the price of the stock?

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