Question: 2) Jedi Technologies stock is expected to pay the first dividend of $3.00 at the end of three years. Once the firm starts paying dividends,

 2) Jedi Technologies stock is expected to pay the first dividend

2) Jedi Technologies stock is expected to pay the first dividend of $3.00 at the end of three years. Once the firm starts paying dividends, analysts expect the dividends to grow at a supernormal rate of 7% for the next two years, and then attain a constant growth of 4.7% forever thereafter. The firm's beta is 1.2, the risk-free rate of return is estimated to be 5.4%, and the market risk premium is 4.5%. a) What is the value of Jedi's stock today? b) In addition to the regular dividend stream, Jedi Tech. has announced that they will distribute a special dividend of $1.35 per share at the end of each of the first four years. What will be the value of the stock today

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