What will the next dividend be

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A firm has been growing at 20% per year, and you expect this growth rate will continue for another 2 years. After that it will face more competition and slip into a constant growth rate of 6% forever. If the discount rate is 12% and last dividend paid was $3.

(a) What will the next dividend be?

(b) What is the expected price of the stock 2 years from now?

(c) What should the stock price be today?

Reference no: EM133068595

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