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Question 7 1 pts A stock will pay dividends of $1.7 four years from today, $2.2 five years from today, and $3.3 six years from
Question 7 1 pts A stock will pay dividends of $1.7 four years from today, $2.2 five years from today, and $3.3 six years from today. There will be no dividend payments prior to year 4. After year 6, the growth rate in dividends per year is expected to be 6% forever. The required return on the stock is 11%. P4, the price of the stock 4 years from now, should be $ DO NOT ROUND INTERMEDIATE VALUES, NO CREDIT WILL BE GIVEN FINAL ANSWER IN DOLLARS, ROUNDED TO TWO DECIMAL PLACES * Question 8 1 pts PriceWar Industries recently paid a dividend of DO = $2.14. We expect the company's dividend to grow by 30% this year, by 20% in YR2, and at a constant rate of 5% in YR3 and thereafter. The required return on this low-risk stock is 9.00%. What is the price at YR4? * DO NO ROUND NTERMEDIA VALUES, NO CRE VILL BE EN FINAL ANSWER IN DOLLARS, ROUNDED TO TWO DECIMAL PLACES *
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