FIN Corp. will close in 3 years with the annual dividends of $3, $6, and $36 over the next 3 years, respectively. What is the current share value given a discount rate of 12%?
1. $33.09
2. $35.68
3. $28.23
4. $30.07
A firm just paid an annual dividend of $0.90 a share and plans on increasing future dividends by 2 percent annually forever. What is the share value if k=15%?
1. $6.92
2. $7.06
3. $8.13
4. $8.97
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