1. Consider the following scenarios and determine the current prices of the equities if their growth...

Transcribed Image Text:

1. Consider the following scenarios and determine the current prices of the equities if their growth rates are constant at 3%. a. A stock that returns 8% and will pay a $2 dividend this year. b. A stock that returns 4% and will pay a $3 dividend this year. c. A stock that returns 20% and will pay a $8 dividend this year. 1. Consider the following scenarios and determine the current prices of the equities if their growth rates are constant at 3%. a. A stock that returns 8% and will pay a $2 dividend this year. b. A stock that returns 4% and will pay a $3 dividend this year. c. A stock that returns 20% and will pay a $8 dividend this year.