Question: please help me woth solution as soon as possible 2 3 Novartis has issued a stock on March 1, 2010, with the following characteristics: 4
2 3 Novartis has issued a stock on March 1, 2010, with the following characteristics: 4 5 It will pay no dividends until March 1, 2013, after which it will pay a dividend every 6 March 1, starting at a value of CHF 2.50. This dividend will grow by 10% every year 7 until March 1, 2018, after which the growth rate will slow to 5% indefinitely. 8 9 You have CHF 50,000 to invest in this stock on March 1, 2011. How many stocks 10 can you buy? (12 points) 11 12 If you sell these stocks on March 1, 2016, and assuming all dividends you received 13 were reinvested at 4% compounded annually, how much money will you end up 14 with on March 1, 2015? (18 points) 15 16 17 18 19 20
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