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1.Great Pumpkin Farms just paid a dividend of $3.70 on its stock. The growth rate in dividends is expected to be a constant 7 percent
1.Great Pumpkin Farms just paid a dividend of $3.70 on its stock. The growth rate in dividends is expected to be a constant 7 percent per year indefinitely. Investors require a return of 16 percent for the first three years, a return of 14 percent for the next three years, and a return of 12 percent thereafter. What is the current share price? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Current share price $ 2. The common stock of Eddie?s Engines. Inc. sells for $43.88 a share. The stock is expected to pay $2.30 per share next year. Eddie?s has established a pattern of increasing their dividends by 4.4 percent annually and expects to continue doing so. What is the market rate of return on this stock? 9.64 percent 5.24 percent 19.08 percent 5.44 percent 12.33 percent
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