M Final Review Extra Credit x CChegg Study I Guided Sc x C ezt com o.mheducation

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M Final Review Extra Credit x CChegg Study I Guided Sc x C ezt com o.mheducation /hm.tpx R MyLab & rin. M McGraw-Hill Connect Lesson5 Bookmark BMGT 481W BFIN 300 Financial Management FA15: FA15 FINANCE Final Review Extra Credit Question 9 (of 15 9. 1.66 points The Bell Weather Co. Is a new firm In a rapldly growing Industry. The company ls planning on Increasing Its annual dividend by 20 percent a year for the next 4 years and then decreasing the growth rate to 4 percent per year. The company Just pald Its annual dividend In the amount of $2.70 per share. What s the current value of one share of this stock if the required rate of return ls 8.20 percent? O $10115 O $117.93 O $138.63 O $141.33 O $115.23 Check my work Windows 3 OD Seong Ny Seong Nyeon Kim instructions l help Save & Exit AEOI OneDrive01 7:27 2015-12-06

Explanation / Answer

PVF@8.2% Present value D1 $                               3.24 0.924 $                2.99 D2 $                               3.89 0.854 $                3.32 D3 $                               4.67 0.789 $                3.68 D4 $                               5.60 0.730 $                4.08 D5 $                               5.82 P4 $                           138.63 0.730 $            101.15 Share price $            115.23

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