Miniscule Computer Chips Incorporated is experiencing a period of growth. Earnings and dividends are expected...
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Miniscule Computer Chips Incorporated is experiencing a period of growth. Earnings and dividends are expected to grow at a rate of 18% during the next two years, 15% in the third year, and at a constant rate of 6% thereafter. Miniscule's last dividend was $1.15, and the required rate of return on the shares is 12%. Required: a) Calculate the price of a share today. (Timeline required.) b) What is the price of the share (estimated) at the end of the first year
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