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please explain. will upvote Hi-Tek is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2
please explain. will upvote
Hi-Tek is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share dividend in Year 7 and increase that dividend by 2.2 percent per year forever. What is the current share price if the required return is 16 percent? Kay's Sewing Loft is going to reduce its annual dividend by 10 percent a year for the next two years. After that, it will maintain a constant dividend of $2 a share. Last year, the company paid an annual dividend of $3 per share. What is the market value of this stock if the required return is 13.7 percentStep by Step Solution
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