7. Uncle Duckys Doll Company will be paying a dividend of $3.60 and a required return of 12%. The dividend 5 years ago was $2.75. What is the current price of Uncle Duckys stock? Include two decimals in your answers.

8. Purple Poo stock is selling for $16 per share and the stock dividends are expected to grow at 3% indefinitely. In addition, the most recent Purple Poo dividend was $1.50. Using the constant dividend model (Gordon Growth Model), calculate the rate of return on the Purple Poo stock. Include two decimals in your answers.

Uncle Ducky's Doll Company will be paying a dividend of $3.60 and a required return of 12%. The dividend 5 years ago was $2.75. What is the current price of Uncle Ducky's stock? Include two decimals in your answers. Gordon Growth Model P0=D1/(ksg) Problem 8: Constand Growth Stock $16 per share and the stock dividends are expected to grow at 3% indefinitely. In addition, the most recent Formulas you will use: Growth of Dividend: D0 Divident (1+ growth rate )=D1 Dividend Gordon Growth Model: ks=(D1/P0)+g