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Q4. You are considering investing in Acme, Inc. Suppose Acme is currently undergoing expansion and is not expected to change its cash dividend while expanding

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Q4. You are considering investing in Acme, Inc. Suppose Acme is currently undergoing expansion and is not expected to change its cash dividend while expanding for the next 4 years. This means that its curre earnings are expected to r three yea and after that the dividends would grow at a Acme's common stock is 11%, what is a share worth today? nt annual 4.00 dividend will remain for the next 4 years. After the expansion is completed, higher esult causing a 30% increase in dividends each year for 3 years. After these rs of 30% growth, the dividend growth rate is expected to be 10% per year for next two years constant 2% per year forever. If the required return for

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