Question
1.Hideki Corporation has just paid a dividend of 729 per share. Annual dividends are expected to grow at the rate of 3 percent per year
1.Hideki Corporation has just paid a dividend of 729 per share. Annual dividends are expected to grow at the rate of 3 percent per year over the next four years. At the end of four years, shares of Hideki Corporation are expected to sell for 7,504. If the required rate of return is 14 percent, compute the intrinsic value of a share of Hideki (Enter your answer as a number, rounded to the nearest whole number, like this: 1234)
2.An analyst has gathered the following information for the Oudin Corporation:
Expected earnings per share = 5.97
Expected dividends per share = 2.70
Dividends are expected to grow at 2.68 percent per year indefinitely
The required rate of return is 7.80 percent
Based on the information provided, compute the price/earnings multiple for Oudin
(Enter your answer as a number with two decimal places, like this: 12.34)
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