Question: A. Bridgestone Ltd expected its share price a year from now is $23.80. The company is expected to pay a dividend of $0.75 next year.

A. Bridgestone Ltd expected its share price a year from now is $23.80. The company is expected to pay a dividend of $0.75 next year. The required rate of return is 7.5%. Apply the constant growth dividend model to fund the current price of this share.

B. Lady Danbury Ltd is a fast growing company and expects to grow at a constant rate of 2.35% for the next several years. The company paid a dividend of $1.75 last week. What is the maximum price that you would be willing to pay for this companys shares if your required rate of return was 6.5%

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