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Q4) Magnetic Corporation expects dividends to grow at a rate of 14.50% for the next two years. After two years dividends are expected to grow
Q4) Magnetic Corporation expects dividends to grow at a rate of 14.50% for the next two years. After two years dividends are expected to grow at a constant rate of 04.40% indefinitely. Magnetic's required rate of return is 14.07% and they paid a $1.04 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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