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Calculate purchase price of stock

Yesteryear Productions pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $0.40 a share for two years commencing four years from today. After that time, the company plans on paying a constant $0.75 a share annual dividend indefinitely. How much are you willing to pay to buy a share of this stock today if your required return is 11.6 percent?

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## Q : Estimating expected rate of return

Consider the following probability distribution of returns estimated for a proposed project that involves a new ultrasound machine, What is the expected rate of return on the project?