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Question 2 (1 point) XYZ Company has expected earnings of $6 for next year and usually retains 50 percent for future growth. Its dividends are
Question 2 (1 point) XYZ Company has expected earnings of $6 for next year and usually retains 50 percent for future growth. Its dividends are expected to grow at a rate of 4 percent indefinitely. If an investor has a required rate of return of 12 percent, what price would he be willing to pay for XYZ stock? (please round to and use 2 decimal places, if your answer is $53.8922, enter 53.89, if your answer is $5, enter 5.00) Your Answer: MacBook Pro
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