Question
1. Raya Inc. pays a dividend of $8.78 per year. It its required return was 14.97%, what would the preferred stock's value be? 2. Consider
1. Raya Inc. pays a dividend of $8.78 per year. It its required return was 14.97%, what would the preferred stock's value be?
2. Consider the publicly traded firm Gemma Corp. Their last dividend paid was $2.34. The growth rate is expected to be 8% for the next two years and then 4% forever after that. The firm's required return is 11%. What is the best estimate of the current stock price? Do not round intermediate calculations. And include two decimals in your answer
3. Firm Tomorrowland paid a dividend last quarter of $6.82. It is expected to have non constant growth over the next two years with 2% over the next year and 5%, the following year. Then it will grow at a constant rate of 2% forever after. What is the dividend paid in year 3 (D3) after the first year of constant growth?
Can you please help with these questions? I'm begging. Thank you so much & looking forward to giving a positive rating!
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