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answer questions 5-8 using the formulas provided. please dont use excel 5. In one year, Bold Betties Inc. will pay a $2 per share dividend
answer questions 5-8 using the formulas provided. please dont use excel
5. In one year, Bold Betties Inc. will pay a $2 per share dividend and it is expected to grow by 5 percent per year. If the required retum on this stock is 11 percent, what is the current stock price? Hint: P0=RgD0(1+g)=RgD1 6. In one year, Bold Betties Inc, will pay a $4 per share dividend and it is expected to grow by 2 percent per year. If the required return on this stock is 14 percent, what is the current stock price? Hint: P0=RgD0(1+g)=RgD1 7. Bold Betties Inc. currently pays a $3 per share dividend and it is expected to grow by 3 percent per year. If the required return on this stock is 12 percent, what is the current stock price? Hint: P0=RgDe(1+g)=RgDt 8. Bold Betties Inc. currently pays a $6 per share dividend and it is expected to grow by 4 percent per year. If the required return on this stock is 10 percent, what is the current stock price? Hint: P0=RgD0(1+R)=RBD1 Step by Step Solution
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