5a. A company is expected to pay a dividend of $2.50 per share every year from...
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5a. A company is expected to pay a dividend of $2.50 per share every year from now on. If the required return on similar investments is 7%, what is the current price of the stock? 5b. Another company is expected to pay a dividend of $2.50 per share next year. The dividends are expected to grow at 4.5% per year indefinitely. If the required return on similar investments is 7%, what is the current price of the stock? 5a. A company is expected to pay a dividend of $2.50 per share every year from now on. If the required return on similar investments is 7%, what is the current price of the stock? 5b. Another company is expected to pay a dividend of $2.50 per share next year. The dividends are expected to grow at 4.5% per year indefinitely. If the required return on similar investments is 7%, what is the current price of the stock?
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