Question: J |_ 1. ABC announced that it would pay the following dividends over the next five years: $0.50. $0.?5. $1.50. $3. and $4. Afterwards. dividends

J |_ 1. ABC announced that it would pay the
J |_ 1. ABC announced that it would pay the following dividends over the next five years: $0.50. $0.?5. $1.50. $3. and $4. Afterwards. dividends will decline at a rate of 2 percent per year indefinitely. What is the firm's current stock price if the required rate of return is 13%?9 e 2. You are E and you want to donate a considerable amount to the University of Windsor. You are planning to set up a scholarship and the fund to be capable of awarding $25,000 annually in perpetuity. The first payment of the scholarship is in five years. The interest rate is 4% compounding semiannually. How much money must you put in the account now to be able to pay the scholarship?

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