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The companies market required return= 11.25% Dividend just paid= $1.35 Dividend growth over the next 5 years= 12.5% Expected dividend growth for years 6-10= 10.5%,
The companies market required return= 11.25%
Dividend just paid= $1.35
Dividend growth over the next 5 years= 12.5%
Expected dividend growth for years 6-10= 10.5%, 9.5%, 8.5%, 7.5%, and 6.5%
Then, the company expects the dividend to grow at a constant rate of 5.5%
Part 1: Construct a table that shows the dividend growth rate and dividends each year.
Part 2: Find value of stock at year 10
Part 3: Find value of stock today
Please help me solve this using excel formulas, thank you.
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