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13. C 1.1 * 1.03 The zero dividend growth model is a special case of the dividend growth model. The solution for the zero dividend
13. C 1.1 * 1.03 The zero dividend growth model is a special case of the dividend growth model. The solution for the zero dividend growth model is all of the following EXCEPT the formula for a perpetuity, b. take the dividend paid out and multiply it by 10. identical for one used to find the value of a British consol d. the same one used for finding the price of a preferred stock. WeFixIt is expected to pay an annual dividend of D; $0.78. The stock of WeFixIt is selling for $10.90 a share and has a required return of Il percent. If the DGM is correct, what must be the growth rate of the dividends? 3.84 percent 3.94 percent 4.12 percent 4.27 percent 14 a
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