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Springs Inc. just paid a dividend of $2.50 on its stock. The growth rate in dividends is expected to be a constant 5 percent per
Springs Inc. just paid a dividend of $2.50 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year, indefinitely. Investors require a 13 percent return on the stock for the first three years, 11 percent return for the next five years, and then a 9 percent return thereafter. a. What is the price of the stock at the end of Year 8? b. What is the price of the stock at the end of Year 3? c. What is the price of the stock today?
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