Verizon (ticker: VZ) plans to pay a $0.90 dividend to investors next year. After that, dividends will grow at 20% for 2

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answerhappygod
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Verizon (ticker: VZ) plans to pay a $0.90 dividend to investors next year. After that, dividends will grow at 20% for 2

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Verizon (ticker: VZ) plans to pay a $0.90 dividend to investors
next year. After that, dividends will grow at 20% for 2 years, then
they will grow at 15% for 2 more years, then they will finally
settle at a constant growth of 4% indefinitely.
Investors require a rate of return of 13% on their investment in
Verizon.
a) List all relevant dividends that we will need to find the price
of the stock.
b) What is the terminal price?
c) What is the current price of the stock?
d) What will the stock price be in year 3?
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