question one )

Marcel Co. is growing quickly. Dividends are expected to grow at a 23 percent rate for the next 3 years, with the growth rate reducing to only a constant 6 percent thereafter. Required : If the required return is 12 percent and the company just paid a $1.60 dividend, what is the current share price? Note : since the dividend at time of $1.60 has just been paid , do not include it in the price at time 0. (Do not round your intermediate calculations .)

question 2)

Far Side Corporation is expected to pay the following dividends over the next four years: $14, $9$7and $2. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever Required : If the required return on the stock 14 percent, what is the current share price? (Do not round your intermediate calculations .)

P8-14 Supernormal Growth (LO1] Marcel Co. is growing quickly. Dividends are expected to grow at a 23 percent rate for the next 3 years, with the growth rate reducing to only a constant 6 percent thereafter. 4 Required: If the required return is 12 percent and the company just paid a $1.60 dividend, what is the current share price? Note: since the dividend at time of $1.60 has just been paid, do not include it in the price at time 0. (Do not round your intermediate calculations.) 42 Multiple Choice $41.13 Multiple Choice $41.13 $39.23 $44.11 $43.25 C $42.38 P8-16 Negative Growth (LO1] Antiques R Us is a mature manufacturing firm. The company just paid a $10 dividend, but management expects to reduce the payout by 6 percent per year indefinitely. Required: If you require a(n) 11 percent return on this stock, what will you pay for a share today? 7:56 ok ences Multiple Choice $58.82 Multiple Choice $58.82 O O $55.85 O $188.00 $55.29 O $54.74 Multiple Choice $58.82 O O $55.85 O $188.00 $55.29 O $54.74 Multiple Choice $58.82 O O $55.85 O $188.00 $55.29 O $54.74