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Assume WXYZ Corp.'s dividend payment will be $2.94 one year from now, $3.43 two years from now, and $5.12 three years from now. Further assume
Assume WXYZ Corp.'s dividend payment will be $2.94 one year from now, $3.43 two years from now, and $5.12 three years from now. Further assume that after these three years, the dividend will grow by 5.3% each year. If the required rate of return for the industry WXYZ Corp. belongs to is 10.9%, what is the market value of WXYZ Corp.'s stock under the Dividend Discount Model? $72.45$72.92$79.80$70.56 Question 20 2.5 pts Assume ABC Corp. pays the dividend of $5.62 this year. For the next 35 years, the firm's dividend will grow by 5.1%, then it will grow by 4.5% each year afterwards. The required rate of return for the firm's industry is 11.2%. What is the present value of the firm's stock under the Dividend Discount Model? $95.56$102.24$105.56$116.45
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