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You are considering whether to invest in a companys common shares. The company is expected...

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Finance

You are considering whether to invest in a companys common shares. The company is expected to pay is first cash dividend of $2.00 at the end of year one. The dividend is expected to grow by 30% in year 2 and 20% in year 3. No further growth in the annual dividend is expected after year three. Calculate annual dividends to the nearest penny ($0.01) per share. If your required return on investment is 15%, what is the maximum price that youd pay for the stock?

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