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PLEASE HELP ASAP Gentry Can Company's (GCC) latest annual dividend of $1.$0 a share was paid yesterday and maintained its historic 7 percent annual rate
PLEASE HELP ASAP
Gentry Can Company's (GCC) latest annual dividend of $1.$0 a share was paid yesterday and maintained its historic 7 percent annual rate of growth. You plan to purchase the stock today because you believe that the dividend prowth rate will increase to 8 percent for the next three years and the selling price of the stock will be 549 per share at the end of that time. a. How much should you be willing to pay for the GCC stock if yeu require a 12 percent return? Do not round intermediate calculations. Round your answer to the nearest cent. s D. What is the maximum price you should be willing to pay for the GCC stock if you believe that the 8 percent growth rate can be maintained indefinitely and you recuire a 12 percent return? Do not round intermediate calculations. Round your answer to the nearest cent. 5 c. If the 8 percent rate of growth is achieved, what will the price be at the end of Year 3, assuming the conditions in Pact b? Do not round intermediate calculations. Found your answer to the nearest cent. 8 Step by Step Solution
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