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Wayne Enterprises just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 2.6
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Wayne Enterprises just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 2.6 percent per year indefinitely. If investors require a 15 percent return on the Wayne Enterprises stock, what is the current price
$19.23
$16.88
$17.72
$15.67
$16.13
What happens to the PV of a set amount to be received in 10 years if your rate of return increases?
The PV increases
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The PV decreases
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The PV doesnt change | ||
The PV goes to infinity
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