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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% during the

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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% during the next 2 years, at 13% in the third year, and at a constant rate of 6% thereafter. Snyder's last dividend was $1.15, and the required rate of return on the stock is 12%. a. Calculate the value of the stock today. b. Calculate P1 and P2. c. Calculate the dividend yield and capital gains yield for Year 3. [ST-4]

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