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Question 9 (1 point) Saved Austin Airlines paid an annual dividend of $1.18 a share last month. The company is planning on paying $1.5, $2.5,
Question 9 (1 point) Saved Austin Airlines paid an annual dividend of $1.18 a share last month. The company is planning on paying $1.5, $2.5, and $3.5 a share over the next 3 years, respectively. After that, dividends will be growing at 5% per year indefinitely. What is the market price of this stock if the market rate of return is 10 percent? $61.28 $16.59 o$43.98 $17.77 $14.07 View hint for Question 9 D view NINU TOT Question / Question 8 (1 point) Saved Rose Solutions has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 2 percent annually. The firm just paid an annual dividend of $1.67. What will the dividend be five years from now? $1.97 $1.88 $2.02 $1.83 Question 9 (1 point) Austin Airlines paid an annual dividend of $1.18 a share last month. The company is planning on paying $1.5. $2.5. and $3.5 a share over the next 3 years, respectively $14.07 D View hint for Question 9 Question 10 (1 point) We learn how to use dividends to value stock. However, many firms do not pay dividends. For example, on Tesla's website it says "Tesla has never declared dividends on our common stock. We [...] do not anticipate paying any cash dividends in the foreseeable future." Tesla's shares are trading at about $438 per share (10/16/2020), a 1-year gain of about 735%. How is it possible? Paragraph BIU
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