Magnetic corporations common stock

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Reference no: EM131527066

Magnetic Corporation expects dividends to grow at a rate of 15.87% for the next two years. After two years, dividends are expected to grow at a constant rate of 6.43% , indefinitely. Magnetic’s required rate of return is 11.04% and they paid a $2.76 dividend today. Compute the following for Magnetic Corporation’s common stock:

a) Dividend at end of year 1 :

b) Dividend at end of year 2 :

c) Dividend at end of year 3 :

d) Price of stock at end of year 2 :

e) Price of stock today :

Reference no: EM131527066

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