The dividend is expected to grow at a rate of 07 at a


1. What is the present value of a $1,450 payment made in seven years when the discount rate is 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

2. Billy BobCo recently paid a current year dividend of $1.57. The dividend is expected to grow at a rate of 0.7%. At a current stock price of $14.35, what return are shareholders expecting.

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Financial Management: The dividend is expected to grow at a rate of 07 at a
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