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PerfectlySoft Corp. is experiencing rapid growth. Dividends are expected to grow at 20 percent per year during the next three years, 15 percent over the following year, and then 8 percent per year thereafter indefinitely. The required return on this stock is 12 percent, and the stock currently sells for $69.8 per share.

Question: What is the projected dividend for the coming year? Explain in detail and please provide all computations.

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Category:- Basic Finance
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