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Snyder Computer Chips, Inc. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15 percent during
Snyder Computer Chips, Inc. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15 percent during the next two years, at 13 percent in the third year, and at a constant rate of 6 percent thereafter. Snyder's last dividend was $1.15, and the required rate of return on the stock is 12 percent. a. Calculate the value of the stock today. b. Calculate P^1 and P^2. c. Calculate the dividend yield and capital gains yield for Years 1,2, and 3
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