Consider the following two equity investments, your required return is 10 percent: Company XZ Inc plans to pay a dividend of $4.25 per share indefinitely. A friend promises to buy XZ stock from you in 5- years for $50. Company AB is your other choice: it plans to increase its dividend every year using the following rule: Dt+1 = Dt *(1+Dt/2); where t is the time in years; year O is the Consider the following two equity investments, your required return is 10 percent: Company XZ Inc plans to pay a dividend of $4.25 per share indefinitely. A friend promises to buy XZ stock from you in 5- years for $50. Company AB is your other choice: it plans to increase its dividend every year using the following rule: Dt+1 = Dt *(1+Dt/2); where t is the time in years; year O is the