Consider a stock that will have dividend growth rates in the next three periods of 10%,...
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Consider a stock that will have dividend growth rates in the next three periods of 10%, 14%, and 3%, respectively. The third growth rate remains forever. The company just paid a dividend, Do, of $1.22. The interest rate is 14%. How much are the dividends in periods 1, 2, and 37 Enter your answers rounded to 2 DECIMAL PLACES. = D₁ 1.34 Correct response: 1.3410.01 D2 1.53 Correct response: 1.5310.01 D3 1.58 Correct response: 1.5810.01 O Click "Verify" to proceed to the next part of the question. Using 1.58 as the dividend in period 3, what is the price of the stock at time 22 Enter your response below rounded to 2 DECIMAL PLACES. Number Click "Verity to proceed to the next part of the question. Consider a stock that will have dividend growth rates in the next three periods of 10%, 14%, and 3%, respectively. The third growth rate remains forever. The company just paid a dividend, Do, of $1.22. The interest rate is 14%. How much are the dividends in periods 1, 2, and 37 Enter your answers rounded to 2 DECIMAL PLACES. = D₁ 1.34 Correct response: 1.3410.01 D2 1.53 Correct response: 1.5310.01 D3 1.58 Correct response: 1.5810.01 O Click "Verify" to proceed to the next part of the question. Using 1.58 as the dividend in period 3, what is the price of the stock at time 22 Enter your response below rounded to 2 DECIMAL PLACES. Number Click "Verity to proceed to the next part of the question.
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Dividend paid D0122 Growth rate g110 Growth rate g214 ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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