Solution-Could anyone rationally expect this growth rate

Could anyone rationally expect this growth rate

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Reference no: EM13940299

Grandiose Growth has a dividend growth rate of 20%. The discount rate is 10%. The end of yeardividend will be $2 per share.

a. What is the present value of the dividend to be paid in year 1? Year 2? Year 3?

b. Could anyone rationally expect this growth rate to continue indefinitely?

Dividend growth rate..20.00%
Discount rate......10.00%
End of year dividend..$2.00

Reference no: EM13940299

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Could anyone rationally expect this growth rate

Reference no: EM13940299

Reference no: EM13940299

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