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Suppose the company paid dividend of $9.08. That is, D0 is $9.08. What is the amount...

Suppose the company paid dividend of $9.08. That is, D0 is $9.08. What is the amount of dividend in Year 13? That is, what is D13? Assume that the dividends are expected to grow by 6% each year.

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Answer #1

Do = $9.08 D. - Do City) 49.08 (1+0.06) Di= $9.6248 0,2= Do C1 + g)3 - 49.08 * (1 + 0.06)3 Di3 = $9.08+ (1.06) Di32 $ 9:08

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