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Q5 A,B on paper Q5:The most recent annual (2012) dividend payment of Warren Industries, a rapidly growing boat manufacturer, was $1.50 per share. The firm's
Q5 A,B on paper Q5:The most recent annual (2012) dividend payment of Warren Industries, a rapidly growing boat manufacturer, was $1.50 per share. The firm's financial manager expects that these dividends will increase at a 10% annual rate, g1, over the next three years. At the end of three years (the end of 2015), the firm's mature product line is expected to result in a slowing of the dividend growth rate to 5% per year, g2, for the foreseeable future. The firm's required return, rs, is 15%. a- Calculate the dividend for each year b- Calculate the price of the share
Q5 A,B on paper
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