Question
1. Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth
1.
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 12 percent, and the company just paid a dividend of $1.30, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Current share price | $ |
2.
The next dividend payment by Halestorm, Inc., will be $1.56 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. If the stock currently sells for $29 per share, what is the required return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Required return | % |
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