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QUESTION 7 5 points Save Ariswer a. In dollars and cents, what is the fair value of a stock that has just paid a dividend

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QUESTION 7 5 points Save Ariswer a. In dollars and cents, what is the fair value of a stock that has just paid a dividend of $4.56, which is expected to grow indefinitely at 1.22%pa, and that has a cost of capital of 10.77%? b. If the historical dividend yield of a stock is 6.57% and the stock's cost of capital is 8.58% and it currently is trading at $65.80, what is its expected growth rate in percentage terms to 2 decimal places? cIf a stock with an expected infinite growth rate of 0.82%pa is trading at $44.98, what must its cost of capital be, in percentage terms to 2 decimal places, to justify the assumption of the next dividend being $4.97? d. in dollars and cents, what is the maximum you would pay for a company that generated profits of $1.45 per share on its 387.5million shares from which it paid a dividend of $0.87 per share and has equity capital of $14.5bn if its cost of capital is 15.55%? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)

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