4.) T-Mobile US Inc. (ticker: TMUS) just paid a dividend of $1.20. Next year they plan...

 

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4.) T-Mobile US Inc. (ticker: TMUS) just paid a dividend of $1.20. Next year they plan to pay a dividend of $2.00 and then they will pay a dividend of $2.50 the following year. After that, the dividend will grow at a constant rate of 3.2%. If the required return is 9%, answer the following questions. a) Clearly label what the dividends will be for year 1-year 3. Why do we stop at year 3? b) Find the terminal price of the constant growth phase. c) Find the current price of the stock. 4.) T-Mobile US Inc. (ticker: TMUS) just paid a dividend of $1.20. Next year they plan to pay a dividend of $2.00 and then they will pay a dividend of $2.50 the following year. After that, the dividend will grow at a constant rate of 3.2%. If the required return is 9%, answer the following questions. a) Clearly label what the dividends will be for year 1-year 3. Why do we stop at year 3? b) Find the terminal price of the constant growth phase. c) Find the current price of the stock.

Answer rating: 100% (QA)

a The dividends for year 1 to year 3 are as follows Year 1 dividend 200 Year 2 dividend 250 Year 3 d... View the full answer