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Varigrowth Inc. just paid a dividend of $2.46 (i.e., DO = $2.46). Such dividend is expected to grow by 50% per year for the next
Varigrowth Inc. just paid a dividend of $2.46 (i.e., DO = $2.46). Such dividend is expected to grow by 50% per year for the next 3 years, after which it is expected to grow at a long-run rate of 3.5%. Assuming investors require a 19% 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 $34.6 and the dividend is $3.952 % What is your dividend yield? |% What is your capital gain (loss) yield? %
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