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Triple-2 is a publicly traded firm. It plans to pay a Bividend of $18 next year. The company follows a dividend policy that raises dividends
Triple-2 is a publicly traded firm. It plans to pay a Bividend of $18 next year. The company follows a dividend policy that raises dividends annually at a rate of 3% ( and expects this rate to go forever ). The required rate of return is 14% . You plan to compute the price at the end of year 2 using the constant growth dividend model ( Gordon model). What is the amount of dividend to use if you want to compute the stock price at t end of year 2?
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