Question: 9 Rosas, Inc will not pay a dividend for two years. Three years from today, the company will pay out a dividend of $3.30 (i.e.,

9 Rosas, Inc will not pay a dividend for two years.

9 Rosas, Inc will not pay a dividend for two years. Three years from today, the company will pay out a dividend of $3.30 (i.e., D3 = 3.30). After that, the dividend will grow at 6% per year forever. If the required rate of return on Rosas' stock is 14%, the stock's current price (i.e., Po) is $ k. 25.39 1. 28.21 m. 31.74 34.83 o. 38.96 n. 10 Bugatti, Inc is expected to pay a dividend of $2.40 next year and its current stock price is $48. The discount rate for the company is 11%. If the market expects Bugatti's dividends to grow at a constant rate forever, then the growth rate must be % p. 5 q. 6 7 8 t. 9 r. S

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