What is the required return on microsoft

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Problems: Quantitative problem I: Macro systems just paid an annual dividend of $0.32 per share. Its dividend is expected to double for the next four years. (D1 through D4), after which it will grow at a more modest pace of 1% per year. If the required return is 13%, what is the current price?

Quantitative problem II: Suppose Microsoft, Inc., is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, which is double last year's dividend of $0.16 per share. If this trend is expected to continue, what is the required return on Microsoft?

Reference no: EM131656375

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