Magnetic Corporation expects dividends to grow at a rate of 17.90% for the next two...
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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 05.60% indefinitely. Magnetics required rate of return is 10.08% and they paid a $1.45 dividend today. Find the value of Magnetic Corporations common stock per share by computing:
Dividend at the end of Year 1:
Dividend at the end of Year 2:
Dividend at the end of Year 3:
Price of stock at end of year 2:
Price of stock today:
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