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What is the dividend

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Reference no: EM133169077

Question - Google has just paid a dividend of $5.00 on its stock. Its dividends are expected to grow at a 20 percent rate for the next two years (Year 2023 and 2024), with the growth rate falling off to a 10 percent thereafter (from Year 2025).

a) What is the dividend at Year 2025?

b) Given the required return of 15 percent, figure out the stock price in 2024 (SP2).

c) Given the required return of 15 percent, figure out the current stock price (SP0) based on both the stock price at Year 2024 and dividends at Year 2023 and 2024.

Reference no: EM133169077

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