2. Suppose you forecast the dividend for the next two years are $1 and $2...
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2. Suppose you forecast the dividend for the next two years are $1 and $2 respectively. After the second year, the dividend will grow at a constant rate of 5 percent per year. The required return is 25 percent. What is the value of the stock in the second year? Group of answer choices 5.25 5.53 7.57 10.5 11.5
2. Suppose you forecast the dividend for the next two years are $1 and $2 respectively. After the second year, the dividend will grow at a constant rate of 5 percent per year. The required return is 25 percent. What is the value of the stock in the second year?
Group of answer choices
5.25
5.53
7.57
10.5
11.5
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