Question
1. Given the information in the table, what is TODAYs price of the stock? Todays Dividend $3.20 Discount Rate 3.00% Growth rate in dividends 0
1.
Given the information in the table, what is TODAYs price of the stock?
| Todays Dividend | $3.20 |
| Discount Rate | 3.00% |
| Growth rate in dividends 0 to 1 | 4.00% |
| Growth rate in dividends 1to 2 | 6.00% |
| Growth rate in dividends 2 to 3 | 5.00% |
| Growth rate in dividends 3 onward | 9.00% |
2.
Given the information in the table, what is the price of the stock in YEAR 1?
| Todays Dividend | $4.33 |
| Discount Rate | 7.46% |
| Growth rate in dividends 0 to 1 | 8.78% |
| Growth rate in dividends 1 to 2 | 9.24% |
| Growth rate in dividends 2 to 3 | 5.16% |
| Growth rate in dividends 3 onward | 3.14% |
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An Introduction To Financial Markets A Quantitative Approach
Authors: Paolo Brandimarte
1st Edition
1118014774, 9781118014776
