Q4) Magnetic Corporation expects dividends to grow at a rate of 17.90% for the next two years. After two years dividend
Posted: Sat Mar 19, 2022 5:57 pm
Q4) Magnetic Corporation expects dividends to grow at a rate of
17.90% for the next two years. After two years dividends
are expected to grow at a constant rate of 04.70%
indefinitely. Magnetics required rate of return is
11.10% and they paid a $2.59 dividend today. Find the
value of Magnetic Corporations common stock per share by
computing:
a) Dividend at the end of
Year 1:
17.90% for the next two years. After two years dividends
are expected to grow at a constant rate of 04.70%
indefinitely. Magnetics required rate of return is
11.10% and they paid a $2.59 dividend today. Find the
value of Magnetic Corporations common stock per share by
computing:
a) Dividend at the end of
Year 1: