Question
1. Given the information in the table, what is the dividend yield from t=0 to t=1? Todays Dividend $3.11 Discount Rate 7.66% Growth rate in
1.
Given the information in the table, what is the dividend yield from t=0 to t=1?
| Todays Dividend | $3.11 |
| Discount Rate | 7.66% |
| Growth rate in dividends 0 to 1 | 7.89% |
| Growth rate in dividends 1 to 2 | 8.38% |
| Growth rate in dividends 2 to 3 | 9.29% |
| Growth rate in dividends 3 onward | 4.14% |
2.
Given the information in the table, what is TODAYs price of the stock?
| Todays Dividend | $2.73 |
| Discount Rate | 3.00% |
| Growth rate in dividends 0 to 1 | 7.00% |
| Growth rate in dividends 1to 2 | 8.00% |
| Growth rate in dividends 2 to 3 | 2.00% |
| Growth rate in dividends 3 onward | 1.00% |
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Personal Finance Turning Money Into Wealth
Authors: Arthur J Keown
5th Edition
0136070620, 9780136070627
