Question
please expalin in details Assume you require 13.7% return. A company has common stock which is expected to have a dividend of $3.01 at the
please expalin in details
- Assume you require 13.7% return. A company has common stock which is expected to have a dividend of $3.01 at the end of year 5. After year 5, the stock's dividends are expected to have a growth rate of 5.4%. What price should be predicted for this stock at the end of year 5 (i.e., what is the terminal value)?
Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234
2. Assume you require 11.6% return. A company has common stock with dividends forecast for the upcoming five years (years 1-5) as shown below. After year 5, the stock's dividends are expected to have a growth rate of 4.9%. What price should be predicted for this stock at the end of year 5 (i.e., what is the terminal value)?
0 | 1 | 2 | 3 | 4 | 5 | |
Dividends | 1.0579 | 1.6603 | 2.0680 | 2.6917 | 3.5280 |
Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234
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