Question: (12 points) Lacy Corp., which is only five years old, has never paid a dividend. Based on your analysis, you think it will pay the

 (12 points) Lacy Corp., which is only five years old, has

(12 points) Lacy Corp., which is only five years old, has never paid a dividend. Based on your analysis, you think it will pay the following dividends in the future: $0 one year from now $1 two years from now $2 three years from now $4 four years from now $5 five years from now Other points: You think that, immediately after the dividend at the end of the fifth year the market will estimate growth at 4% per year and will assign a required rate of return of 12%. If you buy Lacy today, you intend to hold the stock until after the payment of the dividend at the end of the 5th year. Because Lacy is not a mature company and has never paid a dividend, you require a rate of return on your 5-year investment of 27%. . a. What should be the value of Lacy immediately after the dividend at the end of the Sth year? b. What should be the value of Lacy today

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