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tvm 6.stk DIVIDEND GROWTH MODEL PROBLEM Suppose dividends per share have been growing at a constant rate as follows: Ds = $1.958815416 D-4 $2.056756187 D-3

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tvm 6.stk DIVIDEND GROWTH MODEL PROBLEM Suppose dividends per share have been growing at a constant rate as follows: Ds = $1.958815416 D-4 $2.056756187 D-3 $2.159593996 D-2$2.267573696 D-1 = $2.380952381 Do $2.500000000 ("-5" means exactly five years ago !) Let E(R" ] 12% R' = 7% B=1.60. = , , Assume that dividends will continue to grow at the same rate indefinitely. , A.) Draw a cash flow diagram showing six years before and at B.) Find P. outstanding (o/s), then dividends per share $1.958815416.] leastthree years after t = o. - [Note:If NI$19,588,154.16 and there are 10,000,00o shares

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