The xyz corporation pays a dividend of 1 for each share and, Ask an Expert

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The XYZ Corporation pays a dividend of $1 for each share and its required rate of return is 8%. Answer the following questions:

1. Assuming zero growth in dividends, what is the value of each share?

2. Now assume a 4% annual growth rate in the dividend paid. What is the value of each share?

3. Assume the growth rate is still 4%, but the required rate of return drops to 6%. What is the new value of each share?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93060096

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