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PLEASE SHOW WORK IN EXCEL 4. Spartans Technologies was founded 10 years ago. It has been profitable for the last five years, but it has
PLEASE SHOW WORK IN EXCEL
4. Spartans Technologies was founded 10 years ago. It has been profitable for the last five years, but it has needed all of its earnings to support growth. Consequently, it has never paid a dividend. Management does not plan to pay a dividend for the next two years from today and then Management has indicated that it plans to pay a $0.25 dividend three years from today, and then increase it 25% per year for the next three years after that (in years 4, 5 and 6), and then to increase it at a constant rate of 6.00 percent (6%) forever. Please complete the table and then answer questions a and b below. a. Assuming a required return of 11.00%, what is your estimate of the stock's present value? b. If you bought the stock in year 6, what would be the dividend yield on the stockStep by Step Solution
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