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7) Compare the market value of the two plans (find present value) Plan 1: can pay $100,000 in dividends per year for each of the
7) Compare the market value of the two plans (find present value) Plan 1: can pay $100,000 in dividends per year for each of the next two years, or Plan 2: can pay $80,000 in dividends this year, reinvest the other $20,000 (at 10% ) into the firm and then pay $122,000 next year. Investors require a 10% return
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Theoretical Foundations For Quantitative Finance
Authors: Luca Spadafora, Gennady P Berman
1st Edition
9813202475, 978-9813202474
