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The last dividend paid by Gizmo was 41. Dividends are expected to increase at 50% a year for three years, then decrease at 20% a
The last dividend paid by Gizmo was 41. Dividends are expected to increase at 50% a year for three years, then decrease at 20% a year for two years and then increase at a stedy rate of 10% thereafter. Assume that investors require a return of 20%.
Calculate the expected price, five years from now. that is calculate P5.
Also calculate the price today. Show all your work and calculations
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