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What is the value of share

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Reference no: EM132607967

The XYZ Corporation pays a dividend of $1 for each share, and its required rate of return is 8%.

Answer the following questions:

Assuming zero growth in dividends, what is the value of each share?

Now assume a 4% annual growth rate in the dividend paid. What is the value of each share? Assume the growth rate is still 4%, but the required rate of return drops to 6%. What is the new value of each share?

Reference no: EM132607967

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