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Problem 11-12 - Perpetuity Model Suppose that a security pays a dividend of $270 per share per year that will not change over time and
Problem 11-12 - Perpetuity Model Suppose that a security pays a dividend of $270 per share per year that will not change over time and the required rate of return is 6%. A) When the required rate of return is 6%, what is the value of the security? The value of the security would be $ . Round your answer to the nearest two decimal places. B) When the required rate of return is 6.5%, what is the value of the security? The value of the security would be $ . Round your answer to the nearest two decimal places
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