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q4 therefore is not paying dividends for the next 8 years. At the following year, OneNo Corp. will start paying an annual dividend of $10
q4
therefore is not paying dividends for the next 8 years. At the following year, OneNo Corp. will start paying an annual dividend of $10 per share per year until year 13 (this is a period of 0% growth in dividends). Thereafter, it will increase the dividends by 4% per year forever. The required rate of return on this stock is 9%. What is the present value of dividends received during the 0% growth in dividends? Do not use the $ sign. DO NOT USE commas to separate thousands. Use 2 decimals and round to the nearest cent. For example if you obtain $1,432.728 then enter 1432.72; If you obtain $432 then enter 432.00 Step by Step Solution
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