Question
1. A) A stock just paid a dividend of $1.16. The dividend is expected to grow at 24.14% for five years and then grow at
1. A) A stock just paid a dividend of $1.16. The dividend is expected to grow at 24.14% for five years and then grow at 4.69% thereafter. The required return on the stock is 12.47%. What is the value of the stock? B) A stock just paid a dividend of $2.34. The dividend is expected to grow at 28.45% for two years and then grow at 3.72% thereafter. The required return on the stock is 10.49%. What is the value of the stock?
2. Suppose you deposit $2,815.00 into an account today. In 15.00 years the account is worth $3,731.00. The account earned ____% per year.
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