Question: Apache Co. is expected to pay a dividend or $6.00 per share out of earnings of $12 per share. If the required rate of return


Apache Co. is expected to pay a dividend or $6.00 per share out of earnings of $12 per share. If the required rate of return on the stock is 16% and dividends are growing at a current rate of 12% per year, calculate the present value of the growth opportunity for the stock (PVGO). $75 $30 $50 $65 Scottsdale Technology Corporation has just paid a dividend of $0.60 per share. The dividends are expected to grow at 22% per year for the next two years and at 6% per year thereafter. If the required rate of return in the stock is 18% (APR), calculate the current value of the stock. $7.71 $6.93 $7.21 $8.82
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