Question: 5) Quantum Inc. does not pay dividends on its stock currently. It is expected to pay its first dividend of $5 at the end of

 5) Quantum Inc. does not pay dividends on its stock currently.

5) Quantum Inc. does not pay dividends on its stock currently. It is expected to pay its first dividend of $5 at the end of two years from today, and the dividends are then expected to continue at that level forever. What is the intrinsic value of a share of Quantum stock to an investor who requires a 3.35% rate of return on this investment? 6) The Edgar Corporation currently (Do) pays $2 per share dividend. This dividend is expected to grow at a 20% annual rate over the first 3 years, 12% annual rate over the next 2 years, and then at a 6% annual rate into the foreseeable future. What would you pay for a share of this stock, if you demand a 20% rate of return on the investment

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