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1. Juno Mining Company current dividend (at time 0) is $0.50 a share. Its dividend growth rate is expected to be 8% a year forever.
1. Juno Mining Company current dividend (at time 0) is $0.50 a share. Its dividend growth rate is expected to be 8% a year forever. How much would you pay for a share if your required rate of return is 15%?
2. How much would you be willing to pay for one share of Juno if, all else equal, its dividend grows at 8% a year for the next 3 years, and then at a constant 6% forever?
PLEASE NOTE: I ALREADY HAVE ANSWER FOR QUESTION 1. I WOULD LIKE THE ANSWER FOR QUESTION 2. I DON'T NEED ANSWER FOR QUESTION 1
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