Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer both please!!!!!!!!! Sheridan Corp. will pay dividends of $5.00,$6.25,$4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to

answer both please!!!!!!!!!
image text in transcribed
image text in transcribed
Sheridan Corp. will pay dividends of $5.00,$6.25,$4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 6 percent. If the required rate of return is 25.00 percent, what is the current value of the stock? (Round all intermediate calculations and final answer to 2 decimal places, e.g. 15.20.) Current value Management of Ivanhoe, a biotech firm, forecasted the following growth rates for the next three year5: 35 percent, 28 percent. and 22 percent. Management then expects the company to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.40 last week. If the required rate of return is 22 percent, what is the value of this stock? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.) Value of stock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mastering Personal Finance For Total Beginners

Authors: Elizabethi .T Ramireza

1st Edition

B0C7JD61XB, 979-8398030891

More Books

Students also viewed these Finance questions

Question

Which kind of lens is used to make a magnifying glass?

Answered: 1 week ago

Question

In which of the following environments can sound travel fastest?

Answered: 1 week ago