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XYZ Corp, a U.S.form, expects to receive cash dividends from a German joint venture over the coming three years. The first dividend to be paid
XYZ Corp, a U.S.form, expects to receive cash dividends from a German joint venture over the coming three years. The first dividend to be paid at the end of year 1 is expected to be 1,000,000. The dividend is then expected to grow 10% per year over the following two years. XYZ's weighted average cost of capital is 12%. The Euro-dividend at the end of year 3 should be O 11,000,000 O 1.100.000 O 1,210,000 O 1,331,000
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