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Q4) Magnetic Corporation expects dividends to grow at a rate of 13.20% for the next two years. After two years dividends are expected to grow
Q4) Magnetic Corporation expects dividends to grow at a rate of 13.20% for the next two years. After two years dividends are expected to grow at a constant rate of 03.60% indefinitely. Magnetic's required rate of return is 07.27% and they paid a $2.76 dividend today. Find the value of Magnetic Corporation's common stock per share by computing a) Dividend at the end of Year 1: b) Dividend at the end of Year 2: c) Dividend at the end of Year 3: d) Price of stock at end of year 2: e) Price of stock today
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