Question
Varigrowth Inc. just paid a dividend of ?$1.02(i.e,D0=$1.02?). Such dividend is expected to grow by 35?% per year for the next 3?years, after which it
Varigrowth Inc. just paid a dividend of ?$1.02(i.e,D0=$1.02?). Such dividend is expected to grow by 35?% per year for the next 3?years, after which it is expected to grow at a? long-run rate of 55?%. Assuming investors require a 14?% return on the? stock,?
a) What is the price at? t=3? ---?(to the nearest? cent)
?b) What is its price? today? --- (to the nearest? cent)
?c) What is your total rate of return? (% to two? decimals) if in one year the price is ?$27.9 and the dividend is $1.39??
What is your dividend? yield? --- %
What is your capital gain? (loss) yield? --- %?
Instructor-created question 2
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