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You examine the stock of Campus Brewery which is estimated to pay dividends of $2.45 and $2.18 over the next two years, respectively. After that,

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You examine the stock of Campus Brewery which is estimated to pay dividends of $2.45 and $2.18 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 2.5% per year, forever. The required return is 9.9% a. What is the dividend in year 3? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 12.34.) a: Dividend in year a b. What formula did you use to calculate part a? (Write in the number from your formula sheet you used to calculate this) b Formula Number (3) C. What is the share price in two years? (Do not round Intermediate calculations and round your answer to 2 decimal places, 6.9. 32.16.) Share price in year 2 d. What formula did you use to calculate part c? (Write in the number from your formula sheet you used to calculate this) d. Formula Number (price 2) e. What is the current share price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g. 32,16.) Current share prin f. What formula did you use to calculate parte? (Write in the number from your formula sheet you used to calculate this) 1. Formula Number (current price)

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