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Starbucks Corporation has just paid a dividend of $2. In Years 1 and 2, they project to pay $2.70 and $4.70 in dividends, respectively. After
Starbucks Corporation has just paid a dividend of $2. In Years 1 and 2, they project to pay $2.70 and $4.70 in dividends, respectively. After year 2 , the growth rate of dividends will stabilize and remain at 2% forever. What is the intrinsic value of the firm's stock today? The required rate of return is 7%. To get full credit: 1. - Draw the timeline and label everything
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