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please help with these 2- CFD Co. is not paying dividends now. They plan on keep this way for 12 years and then, in the
please help with these
2- CFD Co. is not paying dividends now. They plan on keep this way for 12 years and then, in the 13 th from now, pay a dividend of $5.00 per share that should grow at a constant rate of 3% per year. The required rate of return on this stock is 6.5%. What's it's current price? 3-TUV is a company that is not doing very well and cannot predict a smooth pattern for its dividends. Actually, they've decided to close the operations after the next 6 years. They project the following dividends for the next years: Year 1:\$12.00 Year 2: $5.00 Year 3: $3.00 Year 4:\$14.00 Year 5:\$13.00 Year 6: $16.00 Right after paying the dividend in the 6 th year, they will close the business. How much would you pay for this stock, considering that the appropriate rate of return would be 8% per year? 4- Still regarding TUV from last question, what would be the current stock price if they decided not to close the company, but dividends at a constant rate of 5% per year indefinitely after the dividend payment of the 6 th year Step by Step Solution
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