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Please answer and explain. 5. You have forecast that United Sports, Inc. will pay a dividend of $.60 next year (in time 1), $1.00 two
Please answer and explain.
5. You have forecast that United Sports, Inc. will pay a dividend of $.60 next year (in time 1), $1.00 two years from now (in time 2) and S1.20 three years from now (in time 3). For dividends beyond three years, you assume they will increase at 6% per year from the prior year. If the discount rate is 12%, calculate a fair price for the stock of United Sports, Ind
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