Question: Marcel Co. is growing quickly. Dividends are expected to grow at a rate of 0.11 for the next 4 years, with the growth rate falling




Marcel Co. is growing quickly. Dividends are expected to grow at a rate of 0.11 for the next 4 years, with the growth rate falling off to a constant 0.05 thereafter. If the required return is 0.14 and the company just paid a $1.90 dividend, what is the current share price? Answer with 2 decimals (e.g. 45.45). Apocalyptica Corp. pays a constant $1.68 dividend on its stock. The company will maintain this dividend for the next 6 years and will then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price? Answer with 2 decimals (e.g. 45.45). The next dividend payment by Hot Wings, Inc., will be $1.31 per share. The dividends are anticipated to maintain a 0.07 growth rate forever. If the stock currently sells for $40 per share, what is the required return? Anser with 4 decimals (e.g. 0.1234) Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $11.06 per share dividend in 8 years and will increase the dividend by 0.03 per year thereafter. If the required return on this stock is 0.09 , what is the current share price? Answer with 2 decimals (e.g. 45.45)
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