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Problem:

NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.29 a share. The following dividends will be $0.34, $0.49, and $0.79 a share annually for the following three years, respectively. After that, dividends are projected to increase by 2.4 percent per year.

Required:

Question: How much are you willing to pay today to buy one share of this stock if your desired rate of return is 11 percent?

$1.90
$9.70
$9.63
$7.61
$9.41

Note: Be sure to show how you arrived at your answer.

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Category:- Basic Finance
Reference No.:- M91162297

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