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Mariota Corp. just paid a dividend of $3.30 per share on its stock. The dividend growth rate is expected to be 4.2 forever and investors
Mariota Corp. just paid a dividend of $3.30 per share on its stock. The dividend growth rate is expected to be 4.2 forever and investors require a return of 11.6 percent on this stock. What will the stock price be in 8 years? O $61.98 O $57.87 O $41.20 O $26.84 O $64.58 QUESTION 5 General Importers announced that it will pay a dividend of $4.15 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 7 years. Then, 9 years from today, the company will begin paying an annual dividend of $2.25 forever. The required return is 12.4 percent. What is the price of the stock today? O $3.69 O $11.70 O $18.15 O $10.03 O $10.81 QUESTION 6 Mckerley Corp. has preferred stock outstanding that will pay an annual dividend of $3.55 per share with the first dividend exactly 13 years from today. If the required return is 3.57 percent, what is the current price of the stock? O $99.44 O $63.03 O $96.01 O $60.85
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