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7. [10] A share of a stock pays a dividend of $ 50 semi-annually. The first dividend will be paid in 6 months. The rate
7. [10] A share of a stock pays a dividend of $ 50 semi-annually. The first dividend will be paid in 6 months. The rate of return is expected to be ;(2) = 6%. (a) [5] Determine the price of one share of the stock; (b) [5] Find the price of one share of the stock if the dividend grows at i(2) = 4%
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