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1st drop down choices are $20.69, $1.87, $18.69 or $20.66. The second drop down choices: $20.56 $20.69, $18.69 or $1.87 Suppose Mr. Boom just bought

1st drop down choices are $20.69, $1.87, $18.69 or $20.66. The second drop down choices: $20.56 $20.69, $18.69 or $1.87

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Suppose Mr. Boom just bought a share of AllPower Co., a renewable energy startup. AirFawar promises to pay Mr. Blcom $20 in dividends for one year and then the firm will shut down. Suppose that the Iquidation value of the share is $2, and the rate of time preference is 75%. Then, according to the single-period dividend discount model, the present value of the cash payment received by Mr. Bicom in one year would be 7 , Which means that the market price of the share of stock Is What is the main flow of mukipericd dividend discount models? The requirement of perfect knowledge of the dividend growth rate over time. The assumption that the dividend growth rate would never be higher than the required rate of return or rate of time preference. O The assumption that dividends will remain constant forever. The requirement that the corporation's clviderc payments be accurately predicted

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