In Problem 1011, assume that the growth rate is 16 percent. Calculate the estimated price for this

Question:

In Problem 10—11, assume that the growth rate is 16 percent. Calculate the estimated price for this stock.
IN Problem 10 The Parker Dental Supply Company sells at $32 per share, and Ray Parker, the CEO of this well-known Research Triangle firm, estimates the latest 12-month earnings are $4 per share with a payout of 50 percent. Dr. Parker's earnings estimates are very accurate.
In problem 11 the required rate of return for Ola Industries is 15.75 percent. The stock pays a current of $1.30, and the expected growth rate is 11 percent. Calculate the estimated price. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...