Chair Enterprise has the following expected dividends: $1 in one year and $1.5 in two...

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Accounting

Chair Enterprise has the following expected dividends: $1 in one year and $1.5 in two years. After
that, its dividends are expected to grow at 4% per year forever (so that the 3rd year's dividend will
be 4% more than $1.5 and so on).
a. If Chair Enterprise's equity cost of capital is 10%, what is the current price of its stock
should be?(6 marks)
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