Magnetic Corporation expects dividends to grow at a rate of 17% for the next two years. After two years dividends are expected to grow at a constant rate of 6.1%, indefinitely. Magnetic’s required rate of return is 11.2% and they paid a $1.65 dividend today. What is the value of Magnetic Corporation’s common stock per share? (Show your answers to the nearest cent) What is
Dividend at end of year 1:
What is Dividend at end of year 2:
What is Dividend at end of year 3:
What is Price of stock at end of year 2:
What is Price of stock today: