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Problem 17 Intro ABC Corp. has just paid a dividend of $0.31. ABC has an annual required return of 12.55%. IB - Attempt 1/10 for
Problem 17 Intro ABC Corp. has just paid a dividend of $0.31. ABC has an annual required return of 12.55%. IB - Attempt 1/10 for 10 pts. Part 1 If dividends are annual and expected to be constant, what is the value of the stock? 2+ decimals Submit I Attempt 1/10 for 10 pts. Part 2 What is ABC's dividend yield? 3+ decimals Submit 18 Attempt 1/10 for 10 pts. Part 3 From now on, assume that the dividend of $0.31 was a quarterly dividend. What is the quarterly discount rate? 4+ decimals 18 Attempt 1/10 for 10 pts. Part 4 What is the value if dividends are constant and quarterly? 1+ decimals Submit Part 5 18 Attempt 1/10 for 10 pts. We now think that dividends will grow by 0.6% from quarter to quarter. The firm just paid the quarterly dividend of $0.31. What is the value of the stock? 1+ decimals Submit Part 6 IB Attempt 1/10 for 10 pts. A different analyst thinks that ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.6% thereafter. What is the value of the stock? 1+ decimals Submit
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