Question
q1 DT Motors paid its first annual dividend yesterday in the amount of $.15 a share. The company plans to double the dividend in each
q1
| DT Motors paid its first annual dividend yesterday in the amount of $.15 a share. The company plans to double the dividend in each of the next 3 years. Starting in year 4, the firm plans to pay $1.50 a share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 11 percent? |
Group of answer choices
| $11.02 |
| $11.61 |
| $11.37 |
| $10.26 |
| $11.79 |
q2
| Sew N More just paid an annual dividend of $1.42 a share. The firm plans to pay annual dividends of $1.45, $1.50, and $1.53 over the next 3 years, respectively. After that time, the dividends will be held constant at $1.60 per share. What is this stock worth today at a discount rate of 10 percent? |
Group of answer choices
| $15.08 |
| $16.30 |
| $15.73 |
| $16.79 |
| $17.50 |
Please answer both they are similar
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
