Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please assist two questions Company Z's earnings and dividends per share are expected to grow indefinitely by 4% a year. If next year's dividend is
please assist two questions
Company Z's earnings and dividends per share are expected to grow indefinitely by 4% a year. If next year's dividend is $4 and the market capitalization rate is 14%, what is the current stock price? (Round your answer to 2 decimal ploces.) Pharmecology just paid an annual dividend of $2,30 per share. It's a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 5.00% per year. The nominal cost of capital is 11.75% a. What is Pharmecology's current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What would be Pharmecology's current stock price using forecasted real dividends and a real discount rate? (Do not round intermediate colculations. Round your answer to 2 decimal places.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started