Question
8.Given the information in the table, what is the price of the stock in YEAR 1? Todays Dividend $3.55 Discount Rate 9.16% Growth rate in
8.Given the information in the table, what is the price of the stock in YEAR 1?
| Todays Dividend | $3.55 |
| Discount Rate | 9.16% |
| Growth rate in dividends 0 to 1 | 8.34% |
| Growth rate in dividends 1 to 2 | 8.99% |
| Growth rate in dividends 2 to 3 | 6.59% |
| Growth rate in dividends 3 onward | 3.41% |
10.
Given the information in the table, what is TODAYs price of the stock?
| Todays Dividend | $4.13 |
| Discount Rate | 7.00% |
| Growth rate in dividends 0 to 1 | 7.00% |
| Growth rate in dividends 1to 2 | 2.00% |
| Growth rate in dividends 2 to 3 | 3.00% |
| Growth rate in dividends 3 onward | 9.00% |
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Finance Theory And Practice
Authors: Anne Marie Ward
2nd Edition
1907214259, 978-1907214257
