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4) Flower Company stock currently sells for $55 per share. The market requires a 9% return on the firm's stock. If the company maintains a
4) Flower Company stock currently sells for $55 per share. The market requires a 9% return on the firm's stock. If the company maintains a constant 4% dividend growth rate, what was the most recent dividend per share paid on the stock (D0)? 5) Katie Corp. has an unusual dividend policy. It plans to pay a dividend of $5 per year for the for the first 5 years. The company will then grow the dividends at rate of 6.5% per year, forever. If investors require a 12% return, what is the current price of Katie Corp stock?
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