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The required return on Winterfell's shares is 13 percent and the last dividend of $0.60 has just been paid. Assume that Winterfell has a current
The required return on Winterfell's shares is 13 percent and the last dividend of $0.60 has just been paid. Assume that Winterfell has a current growth rate of 15 percent per annum that is expected to be maintained for only another 2 years and then the growth rate will fall to 6 percent per annum where it is expected to remain indefinitely. Find: i. Dividend to be paid in year-2 (round the answer to 4-decimal places) - ii. Expected price of a Winterfell share after 2 years (round the answer to 4-decimal places) - iii. The value of a Winterfell share today (round the answer to two-decimal places)
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