Question
1A-Columbus Manufacturing's stock currently sells for $ 25.92 a share. The stock just paid a dividend of $3.50 a share (i.e.,D 0 ). The dividend
1A-Columbus Manufacturing's stock currently sells for $ 25.92 a share. The stock just paid a dividend of $3.50 a share (i.e.,D0). The dividend is expected to grow at a constant rate of 6 % a year. What stock price is expected three year from now (P3)? Round your answer to two decimal places.
1B-Columbus Manufacturing's stock currently sells for $ 25.08 a share. The stock just paid a dividend of $2 a share (i.e.,D0=2). The dividend is expected to grow at a constant rate of 3 % a year. What is the required rate of return on the company's stock? Express your answer in percentage, and round it to two decimal places, i.e., 13.54, for example for 0.1354)
1C-A stock is trading at $ 40 .00 per share. The stock is expected to have a year-end dividend of $ 2.5 0 per share (D1), which is expected to grow at some constant rate g throughout time. The stock's required rate of return is 12 percent. If you are an analyst who believes in efficient markets, what is your forecast of g? Answer in a percentage without the % sign, and round it to two decimal places, i.e., 10.54 for 10.54% (or 0.1054).
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