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Step by step please A stock recently made a huge dividend payment of $20/ share. They plan to reduce their dividend payments by $5/ share
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A stock recently made a huge dividend payment of $20/ share. They plan to reduce their dividend payments by $5/ share in each of the next 2 years (i.e., they will pay $15/ share in year 1 and $10/ share in year 2). Afterwards, they will change to a constant dividend growth policy by increasing their dividend by 4%/ year, indefinitely. R=15% 9. Calculate the dividend payment to be made in 30 years. 10. Calculate the stock priceStep by Step Solution
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