Question
Please show all the work done. 1)The common stock of the Hanover Three Industries has just paid a dividend of $1.6 per share. The dividend
Please show all the work done.
1)The common stock of the Hanover Three Industries has just paid a dividend of $1.6 per share. The dividend is expected to grow at a constant rate of 4.60% for ten years. After year ten, the stock will have no terminal value. The required return on the stock is 12%. Calculate the current value of the stock
2)The common stock of General Dynamo is currently priced at $42.04 per share. Assume the stock has just paid a dividend. Calculate the dividend just paid if you assume that the dividends will grow at a rate of 5% per year for two years and that you will be able to sell the stock for $50 at the end of year two? The required rate of return on the stock is 12%.
3)Hendricks Corporation pays a common dividend of $1.3 per year. The company is expected to pay dividends for 20 years. At the end of year 20, the company will fold with no terminal value. Its required rate of return is 20%. Calculate the current value of the firm's stock.
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