Question: Please use excel and show the steps and formula used to get to the answer, thank you. Question 1. Boston Company has just paid dividends
Please use excel and show the steps and formula used to get to the answer, thank you.
Question 1. Boston Company has just paid dividends of $2.5 per share, which the company projects will grow at a constant rate of 5 percent forever. If Boston Company's shareholders require 15 percent rate of return, what is the price of its common stock? Question 2. You plan to buy Bulldog Corporation' stock. You predict that Bulldog will pay dividends of $2 in year 1 and $3 in year 2, respectively. You are also confident that you can sell the stock for $100 per share at the end of year 2. If you require a 10 percent return on the stock, what is its fair price from your perspective
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