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8, A firm just paid a $ dividend per share and the dividend is expected to grow at a constant rate of $6. If the
8, A firm just paid a $ dividend per share and the dividend is expected to grow at a constant rate of $6. If the required rate of return is 11%, then, the right formula is Stock price today = 3(1.06)/(0.11-0.06) 9, A firm is expected to pay $2 dividend per share next year. The dividend grows at a constant rate of 13% and the required rate of return is 20%. Then, the right formula is: Stock price today = 2/(0.2-0.13) 10, A firm is expected to pay $2 dividend per share next year. The dividend is expected to grow at a constant rate of 7%. The right formula is find the dividend in year 5 is Dividend in year 5 = 2(1.07)
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