How do find the value of mag corps common stock per share

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Problem 1: Mag Corp expects dividends to grow at a rate of 20.00% for the next 2 years. After two years dividends are expected to grow at a constant rate of 3.40% indefinitely. Mags required rate of return is 11.30% and they paid a $1.48 dividend today. Find the value of Mag Corps common stock per share by computing:

  1. Dividend at the end of year 1
  2. Dividend at the end of year 2:
  3. Dividend at the end of year 3: 
  4. Price of stock at end of year 2:
  5. Price of stock today:

Reference no: EM132707314

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