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Question 32 (3.5 points) Listen Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, DO = 4.00). The dividends of Robotic
Question 32 (3.5 points) Listen Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, DO = 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 = 20) and at a rate of 10 percent the following year (that is, g2 = 10). Thereafter (i.e., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required rate of return on Robotic Atlanta stock is 17 percent, compute the current price of the stock. (Round your answer to 2 decimal places and record your answer without dotlar sign or commas). Your Answer: Answer Question 33 (3.5 points) Listen If the returns on Stock A are as follows: Year 1 return = -6 %, Year 2 return = 12 %, Year 3 return = -9%, Year 4 return = 37 %, and Year 5 return = 39 %, what is the average return for Stock A over this 5 year period? (Record your answer as a percent rounded to 1 decimal place. If your answer is negative, place a minus sign before your number with no space between the sign and the number. For example, record negative 14.284% as -14.3)
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