Question: use excel and show work with formulas. thanks 2 Beeline Corporation just paid a dividend of $1.56. The dividends are expected to grow at 12
2 Beeline Corporation just paid a dividend of $1.56. The dividends are expected to grow at 12 percent over the next five years. Thereafter, the dividends are expected to grow at 10.83 percent, 9.67 percent, 8.5 percent, 7.33 percent, and 6.17 percent for years 6 through 10. After this, the company expects the dividend to grow at a constant rate of 5 percent. Assume a market required return of 11 percent. Requirement 1: Construct a table that shows the dividend growth rate and dividends each year. Requirement 2: What is the value of the stock at year 10? (Hint: use the constant growth formula) Requirement 3: What is the stock price today? 3 4 5 6
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