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QUESTION 16 XYZ common stock sells for $15 and just paid a $2 dividend per share, which is expected to grow at a rate of

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QUESTION 16 XYZ common stock sells for $15 and just paid a $2 dividend per share, which is expected to grow at a rate of 5% indefinitely. You require a 20% rate of return. Should you buy the stock today if you expect to sell it in four years for $259 Yes No You'd be indifferent between buying the stock and not doing so Cannot be determined. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers MacBook Pro QUESTION 14 6.25 Antiquated Products Corporation produces goods that are very mature in their product life cycles. Antiquated Products Corporation is expected to pay a dividend in year 1 of $1.00, a dividend of $0.90 in year 2. and a dividend of $0.85 in year 3. After year 3. dil expected to decline at a rate of 2% per year. An appropriate required rate of return for the stock is 8%. The stock should be worth O 7.89 10.57 20 O 8.98 6.25 poin TIPSTION 15

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