Page 1 of 1
Q4) Magnetic Corporation expects dividends to grow at a rate of 16.17% for the next two years. After two years, dividend
Posted: Tue Nov 16, 2021 7:46 am
by answerhappygod
- Q4 Magnetic Corporation Expects Dividends To Grow At A Rate Of 16 17 For The Next Two Years After Two Years Dividend 1 (13.59 KiB) Viewed 74 times
Q4) Magnetic Corporation expects dividends to grow at a rate of 16.17% for the next two years. After two years, dividends are expected to grow at a constant rate of 6.44%, indefinitely. Magnetic## required rate of return is 11.83% and they paid a 2.79 dividend today. Compute the following for Magnetic Corporationfi common stock: a) Dividend at end of year 1: (0.5 points) b) Dividend at end of year 2: (0.5 points) c) Dividend at end of year 3 : (0.5 points) d) Price of stock at end of year 2: (1 point) e) Price of stock today: (1 point)