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Q-1 Brigapenski Co. has just paid a cash dividend of $2 per share. Investors require a 16% return from investments such as this. If the
Q-1
Brigapenski Co. has just paid a cash dividend of $2 per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady 8% per year, what is the current value of the stock?
| a. | $27 |
| b. | $36.73 |
| c. | $39.68 |
| d. | $25 |
Q-2
1. Following Question 5, what will the stock be worth in five years?
| a. | $27 |
| b. | $25 |
| c. | $39.68 |
| d. | $36.73 |
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