1 a firm does not pay a dividend it is expected to pay its, Ask an Expert

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1. A firm does not pay a dividend. It is expected to pay its first dividend of $0.63 per share in two years. This dividend will grow at 10 percent indefinitely. Use an 11.5 percent discount rate. Compute the value of this stock?

2. A 15-year annuity of thirty $8,000 semiannual payments will begin 11 years from now, with the first payment coming 11.5 years from now.

If the discount rate is 9 percent compounded monthly, what is the value of this annuity 7 years from now?

What is the current value of the annuity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92663597

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