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Magnetic Corporation expects dividends to grow at a rate of 17.90% for the next two years. After two years dividends are expected to grow at a constant rate of 03.20% indefinitely. Magnetic’s required rate of return is 09.87% and they paid a $1.97 dividend today. Find the value of Magnetic Corporation’s common stock per share by computing:

a) Dividend at the end of Year 1: "

b) Dividend at the end of Year 2:

c) Dividend at the end of Year 3:

d) Price of stock at end of year 2:

e) Price of stock today:

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92852284

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