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2020 Stock (1) - Read-only Read Only - This is an older file format. Ch... Homework We expect a stock to pay a $1.25 dividend
2020 Stock (1) - Read-only Read Only - This is an older file format. Ch... Homework We expect a stock to pay a $1.25 dividend in years 1 - 4 and increase 4% in years 5 and 6. If we anticipate the price of the stock to be $95.00 in year 6, what is the most we would pay for the stock today assuming we require a 9.0% return? We anticipate holding a stock which currently pays a $1.75 annual dividend. If we anticipate the dividend amount to increase by 5% per year and require a 10.25% return, what is the most we would pay for the stock today
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