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Question 2. You plan to buy Bulldog Corporation stock. You predict that Bulldog will pay dividends of $2 in year 1 and $3 in year

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Question 2. You plan to buy Bulldog Corporation stock. You predict that Bulldog will pay dividends of $2 in year 1 and $3 in year 2, respectively. You are also confident that you can sell the stock for $60 per share at the end of year 2. If you require a 10 percent return on the stock, what is its fair price from your perspective? Question 3. Company BMI will experience a supernormal growth rate of 20% in the next two years. The growth rate will then level off to 4% from year 3 and beyond. The most recent dividend payment was $2.00 and the required rate of return for BMI stock is 10%. What is the intrinsic value of the BMI stock

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