Question: please show all work and equations and ill rate thumbs up! thank you! 3. (10 points) Computational Suppose a firm is expected to increase dividends
please show all work and equations and ill rate thumbs up! thank you!3. (10 points) Computational Suppose a firm is expected to increase dividends by 25% in one year and by an additional 15% in two years. After that dividends will increase at a rate of 3% per year indefinitely. If the last dividend was $0.50 and the required return is 10%, what is the price of the stock? 4. (5 points) Computational Animal Rites R Us has succeeded in a hostile take over of Punt the Puppy Co. Currently, the new company sells 15 widgets at $25 each, 20 gidgets at $40 each and 25 slidgets at $5 each. Because of the new company's focus, the company is considering changing its product line. If the company changes its product line, it estimates that is can sell 20 widgets at $18 each, 30 gidgets at $28 each and 40 slidgets at $6 each. What is the incremental cash flow
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
