Question: Help pleasee QUESTION 1 A stock is expected to pay $8 per share every year indefinitely. The current price of the stock is $20. The
Help pleasee
QUESTION 1
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"A stock is expected to pay $8 per share every year indefinitely. The current price of the stock is $20. The equity cost of capital for the company is 15%. What price would an investor be expected to pay per share 2 years into the future? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."
QUESTION 2
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"Company Z is expected to pay a $5.1 dividend at the end of this year. You expect Company Z's dividend to grow by 4% per year forever. Company Z's equity cost of capital is 20% What is the value of a share of Company Z's stock? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."
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