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10 pts Question 10 Problems: Show all the work clearly, for partial or full credit. Excel file should exhibit formulas. Calculate all rates to 2
10 pts Question 10 Problems: Show all the work clearly, for partial or full credit. Excel file should exhibit formulas. Calculate all rates to 2 decimals places in percentage. Solve the problem in a worksheet in the Excel file and Upload the file in the folder titled "Exam 2 File Upload". Texmex Corp. has promised to pay all of it retained earnings as dividend in the amount of $14,000 over the next four years and then shut down (Plan 1). If the required rate of return on its common stock is 10% answer the following questions. Show all the calculations clearly a) If its investors require a dividend of $16,000 in the first three years, what strategy can the firm employ to fulfill that demand (Plan 2)? What is the dividend amount form will pay in the final year? b) Calculate the PV of the dividends for both the dividend plans Upload Choose a File
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