Question
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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