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14. ABSA Bank made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be GH1.75 a share.
14. ABSA Bank made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be GH1.75 a share. Secondly, all dividends after that will decrease by 1.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock today if you require a 10 percent rate of return? * 1 point 16. The common stock of Cocoa processing company(CPC) sells for GH15.02 a share. CPC is expected to pay GH1.35 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 3% annually forever. What is the market rate of return on this stock? *
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