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NU YU Announced Today That It Will Begin Paying Annual

question 73

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NU YU announced today that it will begin paying annual dividends.The first dividend will be paid next year in the amount of €.25 a share.The following dividends will be €.40,€.60,and €.75 a share annually for the following three years,respectively.After that,dividends are projected to increase by 3.5% per year.How much are you willing to pay to buy one share of this equity if your desired rate of return is 12%?


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