Question
2.Suppose the company is expected to pay a dividend of $6.91. next year That is, D1 is $6.91. What is the amount of dividend in
2.Suppose the company is expected to pay a dividend of $6.91. next year That is, D1 is $6.91. What is the amount of dividend in Year 7? That is, what is D7? Assume that the dividends are expected to grow by 11% each year. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
3.ABC, Inc.'s stock is currently selling for $225.24. The dividends are expected to grow at 7.01% each year forever. If the required rate of return on the stock is 13.37%, what is next period's dividend? That is, solve for D1.Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
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