5. Calculate the dividend growth rate of a stock that just paid a dividend of $2.20...

 

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5. Calculate the dividend growth rate of a stock that just paid a dividend of $2.20 and has a market value of $36.89. The required rate of return is 9%. 6. ASannata Ltd has expected earnings of next year of $8.10 and pays 50% of its earnings every year as dividends. It has an expected rate of return of 6.9% and return on reinvestment of 6.9%. Calculate the price of its stock. Recalculate stock price when return on reinvestment is 8%. K B 5. Calculate the dividend growth rate of a stock that just paid a dividend of $2.20 and has a market value of $36.89. The required rate of return is 9%. 6. ASannata Ltd has expected earnings of next year of $8.10 and pays 50% of its earnings every year as dividends. It has an expected rate of return of 6.9% and return on reinvestment of 6.9%. Calculate the price of its stock. Recalculate stock price when return on reinvestment is 8%. K B