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RidgeCrest just paid a dividend of $2.00 to its shareholders. The firm is expecting high growth over the next few years and is projecting the

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RidgeCrest just paid a dividend of $2.00 to its shareholders. The firm is expecting high growth over the next few years and is projecting the dividend to grow by 10% in the first vear, 10% in the second year, and 12% in the third year, before slowing down to a constant 4% growth rate from that point forward. If the required return on the stock is 14%, answer the following questions: 1. What is next year's dividend amount? (2 points) 2. What is the terminal or horizon value? (4 points) 3. What is the intrinsic value (price) of the stock today? (4 points) Be sure to clearly indicate your answer to each question. If it is unclear, it will not be graded. Show your work as much as possible. co Paragraph

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