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Problem:

R&D Technology Corporation just paid a dividend of $1.00 per share. Analysts expect its dividend to grow at 19% per year for the next two years and then 4% per year thereafter.

Required:

Question: If the required rate of return in the stock is 14%, calculate the current value of the stock.

Note:  Please answer in proper manner and show all computations

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91167637

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