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Sara Inc's most recent earnings per share were $2.00. Sara has a consistent policy of paying...

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Finance

Sara Inc's most recent earnings per share were $2.00. Sara has aconsistent policy of paying out 30% of its earnings as dividend.Researchers say that Sara earnings will grow at a constant rate of10% over the next 5 years, and then will grow at 5% after this. Thecost of capital is 9%. a. using the norma two-stage dividend growthmodel( use gordon growth to find terminal value) find the value ofthe stock please explain formula to make chart preferably inexcel

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Sara Inc's most recent earnings per share were $2.00. Sara has aconsistent policy of paying out 30% of its earnings as dividend.Researchers say that Sara earnings will grow at a constant rate of10% over the next 5 years, and then will grow at 5% after this. Thecost of capital is 9%. a. using the norma two-stage dividend growthmodel( use gordon growth to find terminal value) find the value ofthe stock please explain formula to make chart preferably inexcel

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