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Question 7 Consider a stock with the following characteristics: Dividend today = $10 Interest rate = 9% Perpetual dividend growth rate = 3% What
Question 7 Consider a stock with the following characteristics: Dividend today = $10 Interest rate = 9% Perpetual dividend growth rate = 3% What is the price of the stock today? Question 8 Say we have a stock with the following characteristics: Current dividend = $8 Current growth rate = 9% Interest rate = 6% After 3 years, the growth rate will decrease to 3% and remain 3% forever What is the price of the stock today? 9 pts 9 pts
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