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5. A stock currently pays a dividend of $4 for the year. Expected dividend growth is 25% for the next three years and then growth

5. A stock currently pays a dividend of $4 for the year. Expected dividend growth is 25% for the next three years and then growth is expected to revert to 6% thereafter for an indefinite amount of time. The appropriate required rate of return is 10%. What is this stocks intrinsic value?

6. What is the rate of return on an investment that costs $800, earned $60 dividend during the year, and sold after 1 year for $1,000?

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