Question
Please help, I am stuck on these two problems. I understand the formulas, I just get lost in the middle of the calculations and I
Please help, I am stuck on these two problems. I understand the formulas, I just get lost in the middle of the calculations and I don't think my calculator is giving the right answer
I got -.909158 and the second one I am stuck on.
Suppose a companys expected dividends are $2, $2.32, and $3.39 for the next three years and are expected to grow at a constant rate of 4.25% per year thereafter.
What should the current value of the stock if the required rate of return is 6.04%?
The growth rate is 9.01% (EAR). We are calculating the stock value for 5 years worth of dividends that are paid monthly. What is the periodic rate we should use in our calculation?
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