Question: the second part please also the whole time has been saying use the constant growth model Darnell What about Kraft Heinz. They currently pay an

the second part please also the whole time has been saying use the constant growth model
Darnell What about Kraft Heinz. They currently pay an annual dividend of $4.25 and we expect that to grow at a constant rate of 2.6%. Assuming the market requires a(n) 8.7% return from Kraft Heinz, what is their stock worth? (Answer with 2 decimals.) Correct Answer: $69.67 It seems risky to assume they will always increase their dividend in the future. Alexis Sanchez Good point. How much is their stock worth if they were to stop growing their dividend at 2.6% after 5 years and instead grow at 1.5% after that, indefinitely? (Answer with 2 decimals). Darnell
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