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5. Suppose a firm is expected to increase dividend by 10% in one year and two years. After that, dividends will be increased in a

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5. Suppose a firm is expected to increase dividend by 10% in one year and two years. After that, dividends will be increased in a rate of 8% per year indefinitely. If the last dividend was $2 and the required return is 8%, what is the price of stock? 6. Supposed ABC Inc. just paid a dividend of $1.2 per share. It is expected to increase its dividend by 5% per year. If the market requires a return of 10 % on assets of this risk, how much should the stock be selling for

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