A stock will pay a dividend of $1 next quarter, growing at 2% per quarter...

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Accounting

  1. A stock will pay a dividend of $1 next quarter, growing at 2% per quarter for ten years, after which the dividend will stay constant forever. What is the present value of this stock at a 2.5% discount rate?
  2. What are the partial derivatives of the stock price with respect to growth rate and discount rate?

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