Question
a. A firm will pay a dividend of $4.84 next year. The dividend is expected to grow at a constant rate of 4.88% forever and
a. A firm will pay a dividend of $4.84 next year. The dividend is expected to grow at a constant rate of 4.88% forever and the required rate of return is 13.33%. What is the value of the stock?
b. A firm just paid a dividend of $3.54. The dividend is expected to grow at a constant rate of 4.59% forever and the required rate of return is 12.14%. What is the value of the stock?
c. The market price of a stock is $43.95 and it is expected to pay a $3.83 dividend next year. The dividend is expected to grow at 4.83% forever. What is the required rate of return for the stock?
Please answer all three parts of the question for a thumbs up :)
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