11 12 02. The next dividend for the Dynamic Company will be $5 per share. Investors require a 13 14 percent return on companies such as Dynamic. Dynamic's divident increases by 6 percei 14 every year.Based on the dividend growth model, what is the value of Dynamic's stock toda 15 Hint: Formula for dividend growth model is as follows: Po=D./(R-9) 18 Q3. How much are you willing to pay for one share of Red Snapper stock if the company 19 just paid a $0.60 annual dividend, the dividends increase by 2.4 percent annually, and you 20 require a 9 percent rate of return? 21 (Hint: This amounts to a Nonconstant growth, and the formula is as follows: 22 P. =D, X (1+g)/(R-9) where D=Dividend paid, g =growth rate, R=Required return) 23 Unit 7 Problems Type here to search