Question
2. The risk-free rate is 1.35% and the market risk premium is 9.24%. A stock with a of 1.52 just paid a dividend of $1.64.
2. The risk-free rate is 1.35% and the market risk premium is 9.24%. A stock with a of 1.52 just paid a dividend of $1.64. The dividend is expected to grow at 21.41% for five years and then grow at 3.83% forever. What is the value of the stock? Currency: Round to: 2 decimal places.
3. Coca-Cola Drinks needs to raise $43.00 million by issuing additional shares of stock. If the market estimates Coca-Cola Drinks will pay a dividend of $1.52 next year, which will grow at 4.33% forever and the cost of equity to be 14.23%, then how many shares of stock must Coca-Cola Drinks sell? Number: Round to: 0 decimal places
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