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6. Wariable and/or Supernormal growth Rainbow Industries, Inc. just paid a dividend of $3 per share of common stock. Analysts expect the company's dividend to
6. Wariable and/or Supernormal growth Rainbow Industries, Inc. just paid a dividend of $3 per share of common stock. Analysts expect the company's dividend to grow 50% the next two years, and then settle into a constant growth rate of 10%. The required rate of return on the company's stock is 15% What should be the current price of the company's stock? Calculate a. D: 3054.50 D245 ( 6.75 = 2 D3- N' Calculate the following: Expected Dividend Yield at P0- Expected Capital Gains Yield at PO- b. 4.50 ng% RY 370 1.43 S- 0, Po
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