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ABC Corp. has just paid a dividend of $0.44. ABC has an annual required return of 12.11%. IB Attempt 1/8 for 10 pts. Part 1
ABC Corp. has just paid a dividend of $0.44. ABC has an annual required return of 12.11%. IB Attempt 1/8 for 10 pts. Part 1 If dividends are annual and expected to be constant, what is the value of the stock? 2+ decimals Submit Attempt 1/8 for 10 pts. Part 2 What is ABC's dividend yield? 3+ decimals Submit Part 3 IB- Attempt 1/8 for 10 pts. From now on, assume that the dividend of $0.44 was a quarterly dividend. What is the quarterly discount rate? 4+ decimals Submit What is the value if dividends are constant and quarterly? 1+ decimals Submit Part 5 B Attempt 1/8 for 10 pts. We now think that dividends will grow by 0.5% from quarter to quarter. The firm just paid the quarterly dividend of $0.44. What is the value of the stock? 1+ decimals Submit Part 6 Attempt 1/8 for 10 pts. A different analyst thinks that ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.5% thereafter. What is the value of the stock? 1+ decimals Submit
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