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8 January, 10:53

Franktown meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2 percent annually thereafter. how much will one share of this stock be worth six years from now if the required rate of return is 14.5 percent?

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  1. 8 January, 11:27
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    I guess the correct answer is $15.77

    Franktown Meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2% annually thereafter. One share of this stock be worth six years from now is $15.77 if the required rate of return is 14.5%
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