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Thank you!
Nonconstant growth: Tin-Tin Waste Management, Inc., is growing rapidly. Dividends are expected to grow at rates of 30 percent, 35 percent, 25 percent, and 18 percent over the next four years. Thereafter the company expects to grow at a constant rate of 7 percent. The stock is currently selling at $45.36, and the required rate of return is 17.0 percent. Compute the dividend for the current year (D0).
(Round your intermediate calculations to 3 decimals places, i.e., $2.756, and your final answer to 2 decimal places, i.e., $14.75. )
D0 = $_________
Thank you!
Nonconstant growth: Tin-Tin Waste Management, Inc., is growing rapidly. Dividends are expected to grow at rates of 30 percent, 35 percent, 25 percent, and 18 percent over the next four years. Thereafter the company expects to grow at a constant rate of 7 percent. The stock is currently selling at $45.36, and the required rate of return is 17.0 percent. Compute the dividend for the current year (D0).
(Round your intermediate calculations to 3 decimals places, i.e., $2.756, and your final answer to 2 decimal places, i.e., $14.75. )
D0 = $_________