Question: Please solve using Excel. Wheat Inc. has just paid its annual dividends of $2.10. The company is expected to pay the same $2.10 dividend for
Wheat Inc. has just paid its annual dividends of $2.10. The company is expected to pay the same $2.10 dividend for year 1 and 2. After that dividends is expected to grow at an annual rate of 18% for the following 2 years, and at 12% for 3 years after that, then dividend is expected to grow at a constant rate of 5% indefinitely. Required rate of return on Wheat Inc. stock is 14% a. What is the expected dividend in vear 5? b. What is the expected dividend in year 7? c. What is the expected value for the stock in vear 7? d. What is the current value of one share of Wheat Inc. stocks today
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