Question: QUESTION 12 Firm XYZ does not yet pay a dividend. But, in 4 years you think that they will start paying a dividend and it

QUESTION 12 Firm XYZ does not yet pay a dividend. But, in 4 years you think that they will start paying a dividend and it will be $2.37 per share. Each year after that, the dividend is expected to grow by 2.4%. The required rate of return for XYZ stock is 11.5% per year. What should be the price of XYZ stock today? QUESTION 13 Dividends on Common stock are usually cumulative. O True False

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