Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it...
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Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from today. The dividend should grow rapidly - at a rate of 20% per year during Years 4 and 5; but after Year 5, growth should be a constant 8% per year. If the required return on Microtech is 13%, what is the value of the stock today? Round your answer to the nearest cent. $ Fee Founders has perpetual preferred stock outstanding that sells for $46.00 a share and pays a dividend of $5.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places. % Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from today. The dividend should grow rapidly - at a rate of 20% per year during Years 4 and 5; but after Year 5, growth should be a constant 8% per year. If the required return on Microtech is 13%, what is the value of the stock today? Round your answer to the nearest cent. $ Fee Founders has perpetual preferred stock outstanding that sells for $46.00 a share and pays a dividend of $5.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places. %
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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