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Enter your answers into the box below. Make sure you label your answers using (1), (2), etc. You many wish to provide your work for

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Enter your answers into the box below. Make sure you label your answers using (1), (2), etc. You many wish to provide your work for partial credit if your answer is partially correct. 7 XYZ Inc. pays $6.40 current dividend out of its net income of $10.XYZ Inc. has return on investment of 16%, and a beta of its stock is 1.75. Its dividends are assumed to grow at a constant rate indefinitely. Assume market retum of 12.50% and risk-free rate of 3.50%. (1) What is the retention ratio? (2) Find the growth rate of dividends. (3) Find the require rate of return of its stock. (4) Use the constant growth rate model to find the value of the stock

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