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please help Gonzo Growth Corporation has never paid a dvidend, and will not pay one in the next year. However, in exactly two years, it
please help Gonzo Growth Corporation has never paid a dvidend, and will not pay one in the next year. However, in exactly two years, it plans to begin paying a dividend equal to 40% of its earnings at that time (Le, the earnings at the end of yoar 2). Gonzo's earnings are expected to be $5.00 per share in the coming year, and it expects oarnings to grow by 20% over the following year unte the dividend is paid (i.e., from years 1 to 2). After it begins paying the dividend, Gonzo expects future growth to level off at 3% per year afterwards. Based on these assumptions, what dividends will Gonzo pay in the next three years? Nole that you do not need to find the current stock price - all you have to calculate are the dividends D1, D2 and D3, to the nearest cent Be sure to give your answer to onty two docimal placos (Le. to the nearest cent). [Also note: You will not get full credit if you get the timing wrong. D1 is the dollar amount that will be pa'd in dividends per shere in year 1 . It's not the first positive dividend amount that will ever be paid - it's the amount, whatever it is, that will be paid in that specific year. Timing matters.]
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