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What is the current market price of the asi stock

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Reference no: EM132596627

Applied Sink Inc. (ASI) just paid a dividend of $2.50 per share. Its dividends are expected to grow at 18% a year for the next years, 15% a year for the years 2 and 3, 12% for year 4, and at a constant rate of 6% per year thereafter. The required rate of return is 16%.

A. What will be the value of the ASI stock at the end of year 4 (i.e. P4)?

B. What is the current market price (P0) of the ASI stock?

Reference no: EM132596627

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