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II. Global Biz Inc. considers listing its stocks in New York Stock Exchange. Valuate Gobal Biz stocks under the following conditions. Next year's dividend per
II. Global Biz Inc. considers listing its stocks in New York Stock Exchange. Valuate Gobal Biz stocks under the following conditions. Next year's dividend per share (D) is estimated as $30 and the market's required rate of return is 20%. (40 points) 1. What is the stock price per share if you predict that the next year's stock price will be $150. $ (4 points) 2. What is the stock price per share if you predict that D2, D3 and P3 are $36, $43.2 and $216, each. $ (4 points) 3. What will be the stock price per share if you predict that the dividend (D) will be constant in the future. $ (4 points) 4. What will be the stock price per share if you predict that the dividend growth rate will be 10% forever. $ (4 points)
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