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What about Kraft Heinz. They currently pay an annual dividend of $3.15 and we expect that to grow at a constant rate of 2.1%. Assuming
What about Kraft Heinz. They currently pay an annual dividend of $3.15 and we expect that to grow at a constant rate of 2.1%. Assuming the market requires a(n) 7.9% return from Kraft Heinz, what is their stock worth? (Answer with 2 decimals.) Good point. How much is their stock worth if they were to stop growing their dividend at 2.1% after 3 years and instead grow at 1.0% after that, indefinitely? (Hint: Round intermediate calculations to 2 decimals and input final answer with 2 decimals). One of the options is Delta Airlines. They have paid an annual dividend of $3.58 for the past 25 years and we expect them to continue this indefinitely. Assuming the market requires a(n) 11.2\% return from Delta, what is the value of a share of stock? (Answer with 2 decimals.)
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