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Question 4 What would be the expected price of a stack when dividends are expected to prow at a 25% rate for three years, then

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Question 4 What would be the expected price of a stack when dividends are expected to prow at a 25% rate for three years, then grow at a constant rate of 5%, if the stock's required return is 13% and next year's dividend will be $4.00? (5 maris) Click or tap here to enter text. (i) The ordinary shares of FED Limited are selling for $26.75 on the open market. A dividend of $3.68 is expected to be distributed, and the growth rate of this company is estimated to be 5.5%. If Bob Dean, an average investor, is considering purchasing this share at the market price, what is his expected rate of return? (3 marks) Click or tap here to enter text. (iii) What rate of return is expected from a stock that sells for $30 per share, pays $1.50 annually in dividends, and is expected to sell for $33 per share in one year? (2 marks) Click or tap here to enter text

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