Magnetic corporation common stock per share

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Reference no: EM131507279

Magnetic Corporation expects dividends to grow at a rate of 15.8% for the next two years. After two years dividends are expected to grow at a constant rate of 5.7%, indefinitely. Magnetic’s required rate of return is 11.1% and they paid a $1.37 dividend today. What is the value of Magnetic Corporation’s common stock per share? (Show your answers to the nearest cent)

Dividend at end of year 1 =

Dividend at end of year 2 = ____________

Dividend at end of year 3 = ____________

Price of stock at end of year 2 = _____________

Price of stock today = __________

Reference no: EM131507279

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