What is the approximate value of its expected

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Genentech is expecting both earnings and dividends to grow by 15% in Year 1, 0% in Year 2, by 5% in Year 3, and at a constant rate of 10 percent in Year 4 and thereafter. The required return on Genentech is 15 percent, and it sells at its equili­brium current price $30.63. What is the approximate value of its expected dividend next year? Please show your work.

Reference no: EM133253258

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