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1. Calculate the dividend for year 15 if Do is $2.50 and growth is 6%.

D15 = $__________.

2. Calculate the dividend for each year from D1 through D5 assuming Do is $4 and growth is 7%.

D1 = $

D2 = $

D3 = $

D4 = $

D5 = $

3. Calculate the price of the stock today if Do is $1.00 and growth is 6%. Assume the required rate of return on common stock, rs, is 10%. $_______.

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