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Problem:

Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 20 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 12 percent, and the stock currently sells for $80 per share.

Required:

Question: What is the projected dividend for the coming year?

Note: Please provide equation and explain comprehensively and give step by step solution.

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Category:- Basic Finance
Reference No.:- M91148153

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