The xyz corp has decided that its dividend policy reflect


The XYZ Corp. has decided that its dividend policy reflect company growth. The first quarterly dividend they intend to pay will be $0.80 per share 3 years from today. Quarterly dividend will then increase at a rate of 2% per quarter until the beginning of the 7th year from now, and then grow at 1.2% per quarter thereafter. What price should you pay for a share of XYZ stock ifyou expect an effective quarterly rate of 0.03555?

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Financial Management: The xyz corp has decided that its dividend policy reflect
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