Find which policy support if market rate is twelve percent

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Problem 1: CHERCRO Inc. is a startup. It is estimated that the company will not be paying any dividends for the coming 4 years. If the company distributes $3 per share 5 years from today, the growth rate of the dividends will be 2% per year going forward. If, instead the company distributes $2 per share at the 5th year, the growth rate of dividends will be 6% per year. As an investor of CHERCRO, which policy would you support if the market rate is 12%?

Reference no: EM132954749

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