What is the dividend at the end of year three

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Use the following information to answer questions A-C Dividends of Company X will grow at a rate of 4 percent per year for the first three years, 5 percent per year for years four and five, and 9 percent per year thereafter. The company just paid a dividend of $3.10 and you require a rate of return of 15%.

A) What is the dividend at the end of year three?

B) What is the expected market value of the stock at the end of the fifth year?

C) How much is this stock worth to you at present?

Reference no: EM132596638

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