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urgent (a) You intend to buy Company XYZ's shares and anticipate a dividend of $2.50 in one year, $3.00 in two years, and $4.25 in
urgent
(a) You intend to buy Company XYZ's shares and anticipate a dividend of $2.50 in one year, $3.00 in two years, and $4.25 in three years. In three years, you plan to sell the shares for $180. If your required return for purchasing the stock is 10 percent, how much would you pay for the stock today? (5 marks) (b) Sapura's stock is currently selling for $200 per share and the firm's dividend are expected to grow at 3.5 percent indefinitely. Assuming Sapura's most recent dividend was $4.5, what is the required rate of return on its stock? (5 marks) (c) Explain THREE (3) ways of raising capital by large corporations with examples. ( 9 marks) (d) Based on your opinion, describe the idea of perfect capital structure for businesses. (6 marks) Step by Step Solution
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