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The last dividend paid by Prezie was $1.25. Dividends are expected to increase at 100% a year for three years, and then decrease at 5%
The last dividend paid by Prezie was $1.25. Dividends are expected to increase at 100% a year for three years, and then decrease at 5% a year thereafter.
Assume that investors require a return of 20%.
Calculate the expected dividend, one year from now. That is, calculate D1.
&
Calculate the expected dividend, two years from now. That is, calculate D2.
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