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questions 13 & 14 QUESTION 13 Snuggle Blankets currently pays no dividends. The firm plans to begin paying dividends in 3 years. The first dividend
questions 13 & 14
QUESTION 13 Snuggle Blankets currently pays no dividends. The firm plans to begin paying dividends in 3 years. The first dividend will be $1.00 and dividends are expected to grow at 5% thereafter. Given a required return of 15%, what would you pay for the stock today? A. $7.18 B. $ 7.56 C. $ 8.29 OD.$10.00 E $10.50 QUESTION 14 Dragon Enterprises just paid an annual dividend of $1.50. Dividends are expected to grow by 10% per year for the next three years, and then by 4% per year forever. If the required return is 12%, what should be the current stock price? A $20.40 B. $21.77 C. $22.85 D. $23.94 E. $25.59 Step by Step Solution
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