Question: (20 points) Diets For You announced today that it will begin paying annual dividends next year. The first dividend will be $0.12 a share. The

(20 points) Diets For You announced today that it will begin paying annual dividends next year. The first dividend will be $0.12 a share. The following dividends will be $0.15. $0.20. $0.50. and $0.60 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 4 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of retum is 8.5 percent? o the diridend growth model, explain why a firm would be hesitant to reduce the growth rate of
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