Question: 10. Suppose Google is expected to increase dividends by 20% in year one and by 15% in year two. After that, dividends will increase at

10. Suppose Google is expected to increase dividends by 20% in year one and by 15% in year two. After that, dividends will increase at a rate of 5% per year indefinitely. If the most recent dividend paid by Google was $1 and the required return is 20%, what is the price of the stock today? (Calculate dividends for a few years and draw a time line)

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