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Please use the information below to answer Q10-Q11. Warr Corporation just paid a dividend of $2.00 a share (that is, Do = $2.00). The dividend
Please use the information below to answer Q10-Q11. Warr Corporation just paid a dividend of $2.00 a share (that is, Do = $2.00). The dividend is expected to grow at 9% per year for the next 3 years and then at 4% a year thereafter. 10. What are the expected dividends for years 1-4. a. Di=2.18, D2=2.38. D3=2.59, D4=2.69 b. D1= 2.48, D2=2.18. D3=2.79, D4=2.69 c. D1=2.78, D2=2.38. D3=2.59, D4=2.19 d. D1= 2.69, D2=2.59, D3=2.38, D4=2.18 11. Calculate the price of the stock at time 3 (P3 =D4/(r-g)). Assume a required return of 11% (1). (Use original value to compute P3.) a. $48.99 b. $32.04 c. $28.48 d. $38.48 e. $19.99
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