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Shares of Books inc, expect to pay annual dividends of $1,5 at t=1,$2.5 at t=2 and $4 at t=5 (there are no dividends at time

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Shares of Books inc, expect to pay annual dividends of $1,5 at t=1,$2.5 at t=2 and $4 at t=5 (there are no dividends at time 3 and 4 , Atter this penicd 2 . Inc. dividends will grow at 3% per year. The required rate of return on the stock of Books inc. is 11% per year. What is the price of Bocka into today? a. 552.55 b. $36.30 c. $49.91 d. $39.92 QUESTION 22 What is the capital gains yield and dividend yield on the stock that pays a constant and pre-determined dividend of $> in at the end farever and has a required rate of return of 10% per year? a. 0%,11% b. 2%,8% c. 1%,9% d. 0%,10%

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