Question
1. Given the information in the table, what is TODAYs price of the stock? Todays Dividend $2.18 Discount Rate 10.00% Growth rate in dividends 0
1. Given the information in the table, what is TODAYs price of the stock?
| Todays Dividend | $2.18 |
| Discount Rate | 10.00% |
| Growth rate in dividends 0 to 1 | 9.00% |
| Growth rate in dividends 1to 2 | 5.00% |
| Growth rate in dividends 2 to 3 | 5.00% |
| Growth rate in dividends 3 onward | 4.00% |
2.
Given the following information, what is the percentage dividend yield between today and period 1?
| Todays Dividend = | $4.91 |
| Expected Growth rate in dividends = | 4.72 |
| Discount Rate (Required return) = | 5.12 |
Calculate your answer to two decimal places (e.g., 2.51)
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Personal Finance
Authors: Megan Noel, Dan French
2nd Edition
1465246479, 9781465246479
