1 The next dividend payment by Hot Wings, Inc., will be $2.10 per share. The dividends are...
Question:
1 The next dividend payment by Hot Wings, Inc., will be $2.10 per share. The dividends are anticipated to maintain a 5 percent growth rate forever. If the stock currently sells for $48 per share, the required return is4.4percent.
2 The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If investors require an 11 percent return on The Jackson-Timberlake Wardrobe Co. stock, the current price is $ ?. The price will be$n/rin 3 years? and $n/rin 15 years?
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