Question: Q45. NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of S0.67

Q45. NU YU announced today that it will begin paying annual

Q45. NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of S0.67 a share. The following dividends will be S0.72, S0.87, and S1.17 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3.7 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 11 percent? A. $17.24 B. $17.29 C. $16.62 D. S3.39 E. $13.54 Q49. K's Fashions is growing quickly. Dividends are expected to increase by 15 percent annually for the next three years, with the growth rate falling off to a constant 5 percent thereafter. The required return is 16 percent and the company just paid a $3.80 annual dividend. What is the current share price! A. $28.96 B. $31.11 C. $46.55 D. $48.87 E. S52.20

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