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Q7 and Q8 7. A company has an odd dividend policy. The company has just paid a dividend of $3 per share and has announced
Q7 and Q8 7. A company has an odd dividend policy. The company has just paid a dividend of $3 per share and has announced that it will increase the dividend by $5 per share for each of the next five years and then never pay another dividend. If you require a return of 11 percent on the company's stock, how much will you pay for a share today? 8. A company is expected to pay the following dividends over the next four years: $12, 88, $5, and $3. Afterward, the company pledges to maintain a constant dividend of $3 forever. If the required return on the stock is 11 percent, what is the current share price
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