Momsen Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 6 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $79 per share. What is the projected dividend for the coming year?
DISCLAIMER: I have seen similar questions posted but I do not understand them, can you please try to explain it in the simplest way possible? Thank you, I am really confused.
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