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Question A Bucksnort Inc. has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it
Question A Bucksnort Inc. has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If you require a 10 percent return on the company's stock, how much will you pay for a share today? (Do not round intermediate calculations and round the final answer to 2 decimal places. Omit $ sign in your response.) Current share price Question B Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.90, but management expects to reduce the payout by 5 percent per year, indefinitely. If you require an 14 percent return on this stock, what will you pay for a share today? (Do not round intermediate calculations and round the answer to 2 decimal places. Omit $ sign in your response.) Current share price $
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