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Yellow Corp. just paid $1.5 dividends and is assumed to grow at 5% per year. The required return of the company is 13%. The present

Yellow Corp. just paid $1.5 dividends and is assumed to grow at 5% per year. The required return of the company is 13%. The present value of the first 60 dividend payments is $19.44 What is the present value of all the dividend payments from year 61 to infinity assuming the required return and the growth rate stay constant? Question 34 options:

Present Corporation is a young start-up company. No dividends will be paid on the stock for the first year (D1) and $1.75 is expected for year 2. The company will then pay a $2.25 per share dividend in year 3 and will increase the dividend by 4% per year thereafter. The required return on this stock is 14%.

a. What is the dividend payment in year 4?

Question 35 options:

$2.625

$2.10

$2.34

$2.565

None of the answers is correct

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