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Eat your fill restaurants is a young, quickly growing company. They just announced that next year they will pay their first dividend of $4.50 per share. Starting then plan to grow their dividend at 15% per year for next 2 years. At that point, management plans to have grown so large that the company’s new growth rate will be 3% per year. Investors require a return of 10% on this stock.

a) Find D1, D2, D3, D4.

b) What is their stock price in year 3?

c) What is their stock price today?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92429425

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