A. Carter Communications does not currently pay a dividend. You expect the company to begin paying a dividend of $3.40 per share in 10 years, and you expect dividends to grow perpetually at 4.4 percent per year thereafter. If the discount rate is 11 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price:

B. Given the information below for Seger Corporation, compute the expected share price at the end of 2020 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2020. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Year	2014		2015		2016		2017		2018		2019
Price	$	65.90	$	71.80	$	70.50	$	68.00	$	89.50	$	104.90
EPS		2.75		3.46		4.26		4.96		7.80		8.80
CFPS		8.07		8.88		9.19		10.92		12.28		13.42
SPS		42.30		47.30		46.70		50.20		61.40		69.40

	Share Price
Using PE ratio
Using P/CF ratio
Using P/S ratio