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Although i have answers , please complete it step wise. Question 4 Calculate the price of Chico Company's stock today, if after one year if
Although i have answers , please complete it step wise.
Question 4 Calculate the price of Chico Company's stock today, if after one year if will have a dividend of $1.85 and then grow at a rate of 10% to a second dividend at t= 2. Thereafter the growth in dividends slows to 5% per year. Investors think that an appropriate discount rate to use for cash flows for this form is 7%. Correct Answer: 96.82 +0.05 Question 7 Frisco Inc. (stock price $87 is expected to pay a dividend of $2.7. What is Frisco's expected dividend yield? Correct Answer: 3.10 +0.05
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