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please explain how to find the answer using a financial calculator Spendex Corporation paid a dividend of $1.05 per share today. Dividends are expected to
please explain how to find the answer using a financial calculator
Spendex Corporation paid a dividend of $1.05 per share today. Dividends are expected to grow at 12.00% per year for the next 3 years, then at 9.00% per year in the following 2 years. After the 5th year, the growth in dividends is expected to remain constant at 5.00%. As an investor, you require a 14.00% rate of return on this equity investment. What is the maximum price you would be willing to pay for a share of Spendex? Submit Answer format: Currency: Round to: 2 decimal places. Ten years ago, Pac Pac Toys began manufacturing and selling retro arcade games for sports bars. Dividends are currently $2.25 per share, having grown at a 10.00 percent compound annual rate over the past 5 years. That growth rate is expected to be maintained for the next 2 years, after which dividends are expected to grow at half that rate for 3 years. Beyond that time, Pac Pac Toys's dividends are expected to grow at 5.00 3 percent per year. What is the current value of a share of Pac Pac Toys common stock if your required return is 24.00 percent? Submit Answer format: Currency: Round to: 2 decimal placesStep by Step Solution
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