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Imagine you are the financial manager for a corporation purchasing a farm equipment worth $400,000. The following questions pertain to this financial decision. 4. (20pts)

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Imagine you are the financial manager for a corporation purchasing a farm equipment worth $400,000. The following questions pertain to this financial decision. 4. (20pts) The remaining $100,000 for the building purchase will be financed by equity investment. The board of directors has agreed to issue additional shares to raise this money. Given the previous liabilities, only $1 annual dividends are expected for the next 2 years. Starting in year 3, the board plans to issue dividends of $2 a year growing at 5% annually. If the required rate of return for this business is 10% annually, what is the stock price today? How many shares must be issued at this stock price to raise the $100,000

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