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Please answer both questions. Thank you 1. A stock will pay a dividend of $1.11 exactly one year from today. Thereafter, dividends will grow at
Please answer both questions. Thank you
1. A stock will pay a dividend of $1.11 exactly one year from today. Thereafter, dividends will grow at a constant rate of 2% per year. If the discount rate is 11%, what is a fair price for the stock today? Round your answer to the nearest penny. 2. A stock just paid a dividend of $2.11. Going forward, dividends will be paid annually and grow at a constant rate of 2.2% per year. If the discount rate is 10.5%, what is a fair price for the stock today? Round your answer to the nearest penny. I (Ctrl)Step by Step Solution
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