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Nu-Tek, Inc. just paid a dividend of $2 per share. The dividend will be increased by 30% annually for the next four years, after that the growth will be limited to 5% annually to the indefinite future

Nu-Tek, Inc. just paid a dividend of $2 per share. The dividend will be increased by 30% annually for the next four years, after that the growth will be limited to 5% annually to the indefinite future. Your required rate of return is 14%. (1) What are the expected dividends in the next four years? (2) What is the expected dividend in year six? (3) What is the expected stock price at the end of year four? (4) What is the current stock price?

 

May 05 2021 View more View Less

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