FIN 571 WEEK 4 Multiple Choice Question 56

FIN 571 WEEK 4 Multiple Choice Question 56
  	PV of dividends: Cortez, Inc., is expecting to pay out a dividend of $2.50 next year. After that it expects its dividend to grow at 7 percent for the next four years. What is the present value of dividends over the next five-year period if the required rate of return is 10 percent?

 
$10.76
 
$11.88
 
$9.80
 
$11.50

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