Question: Please write out, no excel thanks ! Problem #1: FFF Inc. just paid a dividend of $4.75 per share. Investors require a rate of return
Problem \#1: FFF Inc. just paid a dividend of $4.75 per share. Investors require a rate of return of 7.5% per year, and the dividend is expected to grow constantly, at a rate of 4%, forever. Compute today's stock price. Problem 2: RRR Co. just paid a dividend of $1.15 per share. The dividend is expected to grow by 40% next year, 20\% in both Years 2 &3,10% in Year 4 , and then grow at a constant rate of 4% thereafter. The required rate of return is 8.5%. Compute the selling price of the stock
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