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Wicked Textiles Inc. just paid its annual dividend of $2.50 per share. The dividends are expected to grow for the next 2 years at 10%
Wicked Textiles Inc. just paid its annual dividend of $2.50 per share. The dividends are expected to grow for the next 2 years at 10% rate, and then slow down to a 4% annual rate forever. If investors require 15% return:
8) What is the terminal value of Wicked Textiles in Year 2 (P2)?
9) What should be the current stock price of Wicked Textiles?
10.) What is the current price of a $1,000 par value Treasury bond maturing in 10 years with an annual coupon rate of 8% and YTM of 9%?
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