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Use the following information for the next two questions: Candy Crush Inc. just paid its first annual dividend of $4 per share. The dividends will
Use the following information for the next two questions:
Candy Crush Inc. just paid its first annual dividend of $4 per share. The dividends will then grow for the next 2 years at 9% rate, then slow down to a 3% annual rate forever. Assuming a discount rate of 13%.
14) What is the terminal value of Candy Crush in Year 2?
41.52 | |
| $48.93 |
| $51.94 |
| $35.60 |
How much is the current stock price of Candy Crush?
$48.25 | |
| $58.81 |
| $39.59 |
| $45.90 |
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