Question
Company B is expected to pay dividends of $1 every 6 months for the next 10 years. If the current price of Company B stock
"Company B is expected to pay dividends of $1 every 6 months for the next 10 years. If the current price of Company B stock is $20, and Company B's equity cost of capital is 15%. What price would you expect the stock to sell for at the end of 10 years? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."
question 2
Company D is expected to pay a dividend of $4.5 once a year. It is expected to sell for $40 1 year from today. The equity cost of capital is 19%. What is the expected capital gain rate from the sale of this stock 1 year from today? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."
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