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9.1.2 The stock of XYZ Corporation is currently valued at 25 per share. An annual dividend has just been paid and the next dividend is
9.1.2 The stock of XYZ Corporation is currently valued at 25 per share. An annual dividend has just been paid and the next dividend is expected to be 2 with each subsequent dividend 1+r times the previous one. The valuation is based on an annual interest rate of 12%. What value of r is implied? Suppose the dividends are pavable quarterly with the next one due in exactly one quarter. For the next four quarters the dividend will be .50 each quarter. Every year (after every 4 quarters) the dividend is increased by a factor of 1+s. If the stock is now valued at 25 based i-.12, what value ofs is implied
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