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Please show clear work! Thank you! CityU just paid a dividend of $1.25 to its common shareholders. It announced that it expects the dividends to
Please show clear work! Thank you!
CityU just paid a dividend of $1.25 to its common shareholders. It announced that it expects the dividends to grow by 25% per year for the next 3 years. Then drop to a growth rate of 16% for an additional 2 years. Finally the dividends will converge to the industry median growth rate of 8% per year. If investors are expecting 12% per year on CityU's stock, calculate the current stock priceStep by Step Solution
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