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Q4) Magnetic Corporation expects dividends to grow at a rate of 16.17% for the next two years. After two years, dividends are expected to grow
Q4) Magnetic Corporation expects dividends to grow at a rate of 16.17% for the next two years. After two years, dividends are expected to grow at a constant rate of 6.44%, indefinitely. Magnetic## required rate of return is 11.83% and they paid a 2.79 dividend today. Compute the following for Magnetic Corporationfi common stock: a) Dividend at end of year 1: (0.5 points) b) Dividend at end of year 2: (0.5 points) c) Dividend at end of year 3 : (0.5 points) d) Price of stock at end of year 2: (1 point) e) Price of stock today: (1 point)
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