Question: 8 please use table values for exact values to plug into equations The stock of Alpha Tool sells for $33.60 per share. Its current dividend
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please use table values for exact values to plug into equations
The stock of Alpha Tool sells for $33.60 per share. Its current dividend rate, D0, is $1 per share. Analysts and investors expect Alpha to increase its dividends at a 20 percent rate for each of the next 2 years. This annual dividend growth rate is expected to decline to 18 percent for years 3 and 4 and then to settle down to 14 percent per year forever. Calculate the cost of internal equity for Alpha Tool. Use Table II for your calculations. Round your answer to the nearest whole number. % Present Value Interest Factor (PVIF) (S1 at i \% per period for n periods); PVIF=(1+i)n1:PV0=FVa(PVIFi,e)
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