Question
Varigrowth Inc. just paid a dividend of ?$1.45 (i.e., D0=?$1.45?). Such dividend is expected to grow by 45?% per year for the next 3? years,
- Varigrowth Inc. just paid a dividend of ?$1.45 (i.e., D0=?$1.45?). Such dividend is expected to grow by 45?% per year for the next 3? years, after which it is expected to grow at a? long-run rate of 2.5?%. Assuming investors require a 13?% return on the? stock,?
a) What is the price? 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 ?$22.92 and the dividend is ?$2.03?? --- %
d) What is your dividend? yield? --- %
e) What is your capital gain? (loss) yield? --- %
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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