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Sankey Co.common stock sells for $52 a share and pays an annual dividend that increases by 6 percent annually. The market rate of return on

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Sankey Co.common stock sells for $52 a share and pays an annual dividend that increases by 6 percent annually. The market rate of return on this stock is 10.2 percent. a. What is the amount of the most recent dividend paid? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e..., 32.16.) Suppose Sankey Co changes its strategy and is expected to pay a dividend of $2.60 and $2.24 over the next two years, respectively. After that , the company is expected to increase its annual dividend at 2.8 percent. The required return is 10.2 percent. What is the new stock price today if the company adopts this strategy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Unlike Sankey Co., Weisbro and Sons does not pay divdiends. However, this company has earnings per share of $3.80 and the benchmark PE is 14 times. What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e..., 32,16.) a. b. Dividend $ Dividend Yield New stock price $ Stock Price at PE of 14 $ C. d

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