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PLEASE SHOW WITH WORK AND WITH CALCULATOR WORK IF NECESSARY :) THANK YOU! Redverb Inc. paid a dividend of $5.00 last year (D0 = $5.00).

PLEASE SHOW WITH WORK AND WITH CALCULATOR WORK IF NECESSARY :) THANK YOU!

Redverb Inc. paid a dividend of $5.00 last year (D0 = $5.00). The market consensus is that the company's dividend will grow by 21% per year for 2 years, and at a constant rate of 6.8% in Year 3 and thereafter. The companys cost of equity is 15.0%. What is the terminal value of the stock at the end of Year 2?

A.

$102

B.

$92

C.

$108

D.

$95

Redverb Inc. paid a dividend of $5.00 last year (D0 = $5.00). The market consensus is that the company's dividend will grow by 21% per year for 2 years, and at a constant rate of 6.8% in Year 3 and thereafter. The companys cost of equity is 15.0%. What is the price of the stock today? Do not round intermediate calculations.

A.

$92

B.

$88

C.

$73

D.

$83

Redverb Inc. paid a dividend of $5.00 last year (D0 = $5.00). The market consensus is that the company's dividend will grow by 21% per year for 2 years, and at a constant rate of 6.8% in Year 3 and thereafter. The companys cost of equity is 15.0%. What is the companys capital gains yield for the coming year? Do not round intermediate calculations.

A.

6.8%

B.

7.7%

C.

8.1%

D.

8.2%

PLEASE SHOW WITH WORK AND WITH CALCULATOR WORK IF NECESSARY :) THANK YOU!

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