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C.6 29. Rosas, Ine will not pay a dividend for two years. Three years from today, the company will pay out a dividend of $3.30
C.6 29. Rosas, Ine will not pay a dividend for two years. Three years from today, the company will pay out a dividend of $3.30 (i.e., D,-3.30). After that, the dividend will grow at 5% per year forever. If the required rate of return on Rosas, stock is 14%, the stock's current price (ie, PO a. 25.39 b. 28.21 c. 31.74 d. 34.83 e. 38.96 30. Bugatti, Ine is expected to pay a dividend of $2.40 next year and its current stock price is $48. The discount rate for the company is 14%. If the markets expect Bugatti's dividends to grow at a constant rate forever, then the growth rate must be % a. b. 6 c. 7 d. 8
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