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Question5-19

Question5-19
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Finance-8369358.xls

Solution:Growth rate for next two years = 20%
a) D0 = $1.60
Required return = 10%
Growth rate = 6%
Computation of dividend at the end of year 1, 2 and 3 :D1 = D0*(1+g)
D1 = 1.6*(1+20%)
D1 = $1.92...

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