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ABC, Inc., is planning to pay no dividends on the stock over the next nine years because the firm needs to plow back its earnings

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ABC, Inc., is planning to pay no dividends on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $10 per share 10 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 10 percent, what is the current share price? $86.59 $106.02 $230.14 $52.33 Question 6 12.5pts Zebra, Inc. has preferred stock. The stock will pay an annual dividend of $20 in perpetuity, beginning 8 years from now. If the market requires a return of 5 percent on this investment, how much does a share of preferred stock cost today? $69.46 $88.12 $115.90 $284.27

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