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Please Help me! 5. Use formula, calculator and Excel to answer the following questions: a. Anderson Motors, Inc. has just set the company dividend policy
Please Help me!
5. Use formula, calculator and Excel to answer the following questions: a. Anderson Motors, Inc. has just set the company dividend policy at $0.50 per year. The company plans on being in business forever. What is the price of this stock if an investor wants a 5% return? an investor wants an 8% return? . Price = Dividend / b. Warrior Inc wants its shareholders to earn a 6% return on their investment in the company. At what price would the stock need to be priced today if Warrior had a $1.25 constant annual dividend forever? $3.00 constant annual dividend forever? . c. Lindell Propellers is trying to determine its growth rate for an annual cash dividend. Last year's dividend was $5.25 per share. The stock's target return rate is 15%. What is the stock's price if the annual growth rate is 5%? the annual growth rate is 9%? Price = Last Dividend X (1+B)/(r-g) Step by Step Solution
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