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You are an analyst for a large New York investment firm. You forecast that the next 4 dividends for Yun Jeong Manufacturing (YJM) will be
You are an analyst for a large New York investment firm. You forecast that the next 4 dividends for Yun Jeong Manufacturing (YJM) will be $8.25 this year (paid later this month) and will increase by $0.75 per year to $9.00, $9.75, and $10.50 in the following 3
years. After that you forecast 4% growth in perpetuity for YJM. If the appropriate discount rate is 12%, what is your forecast for the current value of one share of YJM stock?
$ 97.16
$105.41
$120.44
$128.69
$136.50
PLEASE show all work
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