Question: 2 (8 points): Let's assume you are a fund manager at Spearfish Investment. You have been tasked with predicting the stock price of Black Hills
2 (8 points): Let's assume you are a fund manager at Spearfish Investment. You have been tasked with predicting the stock price of Black Hills Bearings, a local start-up company in Spearfish. Based on various pieces of information, you've learned that Black Hills Bearings is planning not to pay any dividends for the next 11 years (until 2034) in order to reinvest all earnings for growth. Then, in the 12th year (2035), they plan to pay a dividend of $12 per share, with subsequent annual increases of 3 percent. Since you are currently taking the BADM 310 class, you know that this problem can be solved using the two-stage dividend growth model. Additionally, you've confirmed the most recent market interest rates required for stock price prediction, and as of the recent Federal Reserve interest rate hike, the current U.S. 10-year Treasury bond yield is 5%. a. Display the cash flow timeline illustrating the future dividends that Black Hills Bearing shareholders will receive over the next 15 years, from 202
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