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Q9 - A company plans to decrease their annual dividend by 3% a year over the next five years due to economical challenges. Once five
Q9 - A company plans to decrease their annual dividend by 3% a year over the next five years due to economical challenges. Once five years have passed, the company will pay a constant dividend of $2 per share. Last year the company payed out $2.2 dividend per share. If the required rate of return for me to buy the shares is 14%, what would I be willing to pay for the shares?
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