What is their required return

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Problem I. A nightclub near me paid an annual dividend of $1.64 per share last year and just announced that future dividends will increase by 1.3 percent annually. What would be the amount of the expected dividend in Year 4?

Problem II. Their competitor just bought shares of a stock for $43.15 per share. In a year, that stock will pay a dividend of $2.65. The dividend will increase 4.5% each year. What is their required return?

Reference no: EM133616095

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