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please work out the problem on paper and not excel A stock will pay no dividends for the next 3 years. Four years from now,
please work out the problem on paper and not excel
A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the amount of $2.1. It is expected to pay a dividend of $3.0 exactly five years from now. The dividend is expected to grow at a rate of 5% per year forever after that point. The required return on the stock is 14%. The stock's estimated price per share exactly TWO years from now, P2, should be $ Margin of error for correct responses: +/.10 Rounding and Formatting instructions: Do not enter dollar signs, percent sigris, commas, X, or any words in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is 12.3456,12.3456%, or $12.3456, you should enter 12.35 ) Step by Step Solution
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