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. . A firm is expecting a: $2 dividend to be paid to shareholders in one year (t=1); $5 dividend the year after (t=2); and

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. . A firm is expecting a: $2 dividend to be paid to shareholders in one year (t=1); $5 dividend the year after (t=2); and from then on the 2% inflation rate is the expected growth rate of the annual dividend which will be paid annually forever; 9% pa required return on equity. O All returns and cash flows are given as nominal figures. Which of the following statements is NOT correct? a. The price in one year from now (t=1), just after the $2 dividend is paid is $71.43 O b. The real growth in the annual dividend after year 2 is 0% O c. The nominal capital return in the first year is 6.03% O d. The price today is $67.37 e. The real capital return in the first year is 4.28%

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