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QUESTION 4 What is the price of XYZ stock expected to be in 4 years if its annual dividend is expected to grow by 1.20
QUESTION 4 What is the price of XYZ stock expected to be in 4 years if its annual dividend is expected to grow by 1.20 percent per year forever, the next dividend is expected in 1 year, the dividend is expected to be 55.60 in 4 years, and the expected return is 9.40 percent per year? 568.29 (plus or minus $0.20) $69.11 (plus or minus 50,20) $71.63 (plus or minus 50.20) 559.57 (plus or minus 50.20) None of the above is within 50.20 of the correct answer QUESTION 5 XYZ owns one share of stock of ABC and one share of stock of CDE. The total value of his holdings is 597.40. Both stocks pay annual dividends that are expected to continue forever. The expected return on ABC stock is 8.30 percent and its annual dividend is expected to remain at $4.30 forever. The expected return on CDE stock is 9.60 percent. The net dividendi naid hy CF is penerted to be 53.20 and all subsequent dividends are expected to grow at a constant rate. What growth rate is expected for CDE dividends
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