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14. The forecasted cash flows from a stock investment are $6 each year for the next 70 years. The first dividend is one year from
14. The forecasted cash flows from a stock investment are $6 each year for the next 70 years. The first dividend is one year from today. After that, the company will cease to exist and have no value. What is the per share value of this stock today if the required rate of return is 10%? A. $49.35 B. $53.79 C. $59.92 D. $60.36 E. $74.84 15. Suppose you know a company's stock currently sells for $76 per share and the required return on the stock is 14%. You also know that the total return is evenly divided between a capital gains yield and a dividend yield (based on Di). If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? A. $4.97 B. $3.62 C. $5.63 D. $3.84 E. $6.08
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