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Question 15 (20 points) [Exam 3 - Stock valuation 2] Sunos Corporation's common stock recently paid its annual dividend of $3 per share. The company

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Question 15 (20 points) [Exam 3 - Stock valuation 2] Sunos Corporation's common stock recently paid its annual dividend of $3 per share. The company is expected to grow at the rate of 20% per year for next three years then its grow rate will settle down to a constant 5% indefinitely. Investors require 13% return for the stock. Blank #1: What is the expected dividend in year 1 (D1)? Blank #2: What is the expected dividend in year 4 (D4)? Blank #3: What is the value of all constant growth dividend in year 3 (P3)? Blank #4: How much should investor pay the stock now (PO)? Instruction: Round all answers to two decimal places. Do not include $. positive (+). or negative (-) sign Blank #1 Ay Blank # 2 Blank # 3 Blank #4

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