Question: 2. Suppose Cisco Systems, Corp. is expected to pay a dividend next year of $1.15 per share. Sales and profits are expected to grow at

2. Suppose Cisco Systems, Corp. is expected to pay a dividend next year of $1.15 per share. Sales and profits are expected to grow at a rate of 15% for the following two years and then at 6% per year thereafter indefinitely. Dividend growth is expected to match sales growth. If the required return is 16%, what is the price of a share of Cisco Systems?

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