What should the stock price be today

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Problem: Tattletale News Corp. has been growing at a rate of 20% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years.

Required:

Question 1: If the last dividend paid was $5, what will the next dividend be?

Question 2: If the discount rate is 21% and the steady growth rate after 3 years is 4%, what should the stock price be today?

Reference no: EM132460696

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