Question
Question1; XYZ Company just paid a quarterly dividend of $3. The quarterly dividends grow at an effective quarterly rate of 1.5%. XYZs effective quarterly cost
Question1; XYZ Company just paid a quarterly dividend of $3. The quarterly dividends grow at an effective quarterly rate of 1.5%. XYZs effective quarterly cost of capital 5%. What is the expected price of XYZ stock in 3 years?
Question 2; Collister Corp. is expected to pay a dividend of $1 per share at the end of this year and $2 per share at the end of the second year. You expect Collister's stock price to be $65 at the end of two years.Collister's equity cost of capital is 10%.Suppose you plan on purchasing Collister stock in one year, right after the $1the dividend is paid.You then plan on selling your stock at the end of year two, right after the $2 the dividend is paid. What is the total return that you will receive on your investment?
Explain, please.
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