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A ) Suppose a firm s next expected dividend is $ 0 . 7 0 per share two years from now. It has an expected
A Suppose a firms next expected dividend is $ per share two years from now. It has an expected dividend $ three years from now and $ four years from now. If the dividends will come once a year after that and stay at $ what price per share is implied by a cost of equity capital? Report an answer in dollars correct to the nearest cent.
Todays price per share is $
enter your response here.
B Now suppose instead that each expected dividend after the $ at year will exceed the previous one by a fraction g What g is required to justify a current share price of $ per share?
Report g as a correct to digits after the decimal, such as The required annual growth is
enter your response here.
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