thquiz2sp2008

thquiz2sp2008 - D 6 and ending with D 10 ). Then the growth...

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Name TH Quiz #2 SPIC, Inc. just announced a dividend of $0.50 per share as well as their decision to reduce dividend payments for the next 5 years due to an expansion project. They expect a decline in the dividend of about 2% per year for 5 years. After 5 years, the project will be completed and the growth rate will go up 7% per year for the next 5 years (starting with
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Unformatted text preview: D 6 and ending with D 10 ). Then the growth rate will fall down to 3% indefinitely (starting with Year 11). If the required rate of return is 7%, what is the current price per share for SPIC, Inc.?...
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