Rate of return on similar investments

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Practice Study Guide Question: XYZ Firm recently paid $3.00 as an annual dividend. Future dividends are projected at $3.50, $4.00, $4.50, and $5.00 over the next 4 years respectively. Beginning 5 years from now, the dividend is expected to increase by 4 % annually. What is one share of this stock worth to you if you require a 10% rate of return on similar investments?

Reference no: EM132042360

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