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Business, 08.10.2019 04:30 kaitlyn114433

Justin owens is an analyst for an equity mutual fund that invests in british stocks. at the beginning of 2008, owens is examining domestic stocks for possible inclusion in the fund. one of the stocks that he is analyzing is british sky broadcasting group (london stock exchange: bsy). the stock has paid dividends per share of £9, £12.20, and £15.50 at the end of 2005, 2006, and 2007, respectively. the consensus forecast by analysts is that the stock will pay a dividend per share of £18.66 at the end of 2008 (based on 19 analysts) and £20.20 at the end of 2009 (based on 17 analysts). owens has estimated that the required rate of return on the stock is 11 percent. question: the compound annual growth rate in dividends from 2005 to 2007 inclu­sive (i. e., from a beginning level of £9 to an ending level of £15.50) and the con­sensus predicted compound annual growth rate in dividends from 2007 to 2009, inclusive are: select one: a. 28.2% and 11.2%b. 29.2% and 12.2%c. 30.2% and 13.2%d. 31.2% and 14.2owens believes that bsy has matured such that the dividend growth rate will be con­stant going forward at half the consensus compound annual growth rate from 2007 to 2009, inclusive, computed in part a. using the growth rate forecast of owens as the constant growth rate from 2007 onwards, the value of the stock as of the end of 2007 given an 11 percent required rate of return on equity. select one: a. 325.64b. 375.64c. 425.64d. 475.64

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Justin owens is an analyst for an equity mutual fund that invests in british stocks. at the beginnin...
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