Calculate the expected price

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The last dividend paid by Gizmo was $1.00. Dividends are expected to increase at 50% a year for three years, then decrease at 20% a year for two years, and then increase at a steady rate of 10% thereafter.

Assume that invetsors require a return of 20%.

Calculate the expected price, five years from now. That is, calculate P5.

Calculate the price today.

Reference no: EM131520225

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