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Business, 20.03.2020 03:11 rd1369

4. Vandelay Industries, a latex company, just paid $7.40 per share in annual dividends (ie. D0 = $7.40), and has historically grown that amount by 5% a year. What is the current value of the stock to an investor who requires a 12.5% return under each of the following scenarios? a) Dividends continue to grow at the historical rate (ie. 5%) b) The dividend growth rate is expected to permanently increase to 7% c) The dividend growth rate is expected to permanently decreaseto3%

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4. Vandelay Industries, a latex company, just paid $7.40 per share in annual dividends (ie. D0 = $7....
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