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Question 6 1 pts Question #6 to #10 will use the following information, guiding you through a wealth management problem. The Goliath Inc. decides to
Question 6 1 pts Question #6 to #10 will use the following information, guiding you through a wealth management problem. The Goliath Inc. decides to pay the following dividends over the next three years $2 $2.6 and $3.38. Thereafter, the company will maintain a constant 10% growth rate in dividends forever. The required return of Goliath's stock is 15%. Suppose Victor has $1000 today. He decides to buy 10 shares of Goliath's stock today and save the rest of his $1000 into the whales Cargo bank, which provides an annual interest rate of 6%. Victor will sell his shares of Goliath's stock in year 3 and withdraw the money from the bank as well. Victor wants to know how much money he can have in year 3, with such an investment plan. Question 6: What is the stock price of Goliath Inc. today? Question 7 1 pts How much money can Victor save in the bank today? Question 8 1 pts What is the stock price (per share) of Goliath Inc. when Victor sells it in year 3 (immediately after the third dividend is paid out)
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