Question: S6. Royalty Stream Co. is expected to pay their first dividend of $10.00 per share 8 years from now. Thereafter, dividends will grow 1.5% per
S6. Royalty Stream Co. is expected to pay their first dividend of $10.00 per share 8 years from now. Thereafter, dividends will grow 1.5% per year forever. What is the current price of the stock if the required rate of return is 6.5% ? What is the current price of the stock if, in addition to the above, they pay a onetime dividend of $8.50,7 years from now? Assume the required rate of return does not change. Blank \# 1 Blank \# 2 A A
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