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Problem 3 (10 points): Please submit your answer in an Excel file. Perfectly Soft Corp. is experiencing rapid growth. Dividends are expected to grow at
Problem 3 (10 points): Please submit your answer in an Excel file. Perfectly Soft Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 20 percent over the following year, and then 7 percent per year thereafter indefinitely. If the risk free rate is 3%, the market rate of return is 10%, Perfectly Soft's beta is 1.2, and the firm just paid a dividend of $1.34, what is the current share price? Attach File Browse My Computer Browse Content Collection
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