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Question 1 1 pts The common stock of Ecolab pays an annual dividend of $1.84 a share. The company has promised to maintain aQuestion 3 1 pts Whole Foods will pay an annual dividend of $1.85 next year. The company just announced that future dividends

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Answer #1

1)

Price of stock = Dividend / required rate

Price of stock = 1.84 / 0.136

Price of stock = $13.53

2)

Price = D1 / required rate - growth rate

Price = 1.85 / 0.14 - 0.02

Price = 1.85 / 0.12

Price = $15.42

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