What is the expected dividend in 8 years

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A stock just paid an annual dividend of $1.1. The dividend is expected to grow by 8% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1% per year, from 8% in year 4 to 4% in year 8 and stay at that level forever.

The required rate of return is 12%.

1)What is the expected dividend in 8 years?

2)What is the expected stock price in 8 years?

3)What should be the current stock price?

Reference no: EM132361191

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