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Q9 and Q10 9. A company is expected to pay the following dividends over the next four years: $12, 88, 85, and $3. Afterward, the
Q9 and Q10
9. A company is expected to pay the following dividends over the next four years: $12, 88, 85, and $3. Afterward, the company pledges to maintain a constant 3 percent growth rate in dividends forever. If the required return on the stock is 11 percent, what is the current share price? 10. Suppose you know that a company's stock currently sells for $75 per share and the required return on the stock is 11 percent. You also know that stock has equal capital gains yield and dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share Step by Step Solution
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