Question
1- Gilmore, Inc., just paid a dividend of $2.43 per share on its stock. The dividends are expected to grow at a constant rate of
1- Gilmore, Inc., just paid a dividend of $2.43 per share on its stock. The dividends are expected to grow at a constant rate of 4.2 percent per year, indefinitely. If investors require a return of 11.8 percent on this stock, what is the current price? (Do not round intermediate calculations, round your answer to two decimals, i.e. 32.16)
2- Farm Supply, Inc., just paid a dividend of $2.75 per share on its stock. The dividends are expected to grow at a constant rate of 5.7 percent per year, indefinitely. If investors require a return of 11.5 percent on this stock, what will the price be in 8 years? (Do not round intermediate calculations, round your answer to two decimals, i.e. 32.16)
3- The next dividend payment by Zizzle, Inc., will be $5.76 per share. The dividends are anticipated to maintain a growth rate of 4.2 percent forever. If the stock currently sells for $53.76 per share, what is the required return? (Do not round intermediate calculations and round your answer to percent with two decimals, i.e. 32.16)
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