Question: d. Rather than accepting the opportunity presented in part C, ABCo. has found another project that will result in the current dividend of $4 being

 d. Rather than accepting the opportunity presented in part C, ABCo.
has found another project that will result in the current dividend of

d. Rather than accepting the opportunity presented in part C, ABCo. has found another project that will result in the current dividend of $4 being paid; however, dividends will grow by 10 percent for the next 5 years and then grow at 3.5 percent forever after the 5 year period. What will the company share sell for in the market today? (6 marks) e. Just when the company thought that all opportunities had been evaluated, another opportunity has been presented. The new opportunity would see the $4.00 dividend being paid; however, dividends will grow by 14 percent for the next 5 years and then the growth will drop to 2 percent forever. What will the company share sell for in the market today? (6 marks) f. If your objective as the financial manager is to maximize shareholder wealth and each of the above events are mutually exclusive, what would you recommend to the management team? Explain why. (2 marks) Problem 2 (24 marks) ABCo. has 3,000,000 shares issued and outstanding and are about to pay their annual dividend of $4.00. Investors require a 14 percent rate of return on these equity shares

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