Question: Solve without using excel 4. AAA Technologies was founded 10 years ago. It has been profitable for the last 5 years, but it has needed

Solve without using excel Solve without using excel 4. AAA Technologies was founded 10 years ago.

4. AAA Technologies was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its eamings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $0.25 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years, and then to increase it at a constant rate of 8.00% thereafter. Management's forecast of the future dividend stream, along with the forecasted growth rates, is shown below. Assuming a required return of 11 .00%, what is your estimate of the stock's current value? Hint: Calculate the horizon value. 0 NA 4 Year Growth rate Dividends 5 6 NA NA NA 30.00% 15.00% 8.00% $0.000 $0.000 $0.000 $0.250 $0.325 $0.374 $0.404

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