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Zarora Store is a famous fashion online store, and the business has been growing since its establishment in 2016. Its dividend had grown at 15
Zarora Store is a famous fashion online store, and the business has been growing since its establishment in 2016. Its dividend had grown at 15 percent per year due to rapid expansion and explosive sales. Sara observed that firm's dividend is currently increasing at 20 percent per year where it will continue increasing for the next 3 years, afterwards it shall drop to 5 percent per year indefinitely. The latest dividend paid is 30 sen per share, and its required return is 10 percent. It is expected that the growth rate of 20 percent shall remain for quite a while. Nadiyah needs to know further information about this company's shares. Thus, she requires answers from questions below: a) Calculate the dividends for the upcoming three years. b) What is the total value of the stock as of today? c) If Nadiyah plans to buy 300 units of firm's shares, how much should she pays for it
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