• Varigrowth Inc. just paid a dividend of ?$1.45 (i.e., D0=?$1.45?). Such dividend is expected to grow by 45?% per year for the next 3? years, after which it is expected to grow at a? long-run rate of 2.5?%. Assuming investors require a 13?% return on the? stock,?

  a) What is the price? t=3? $---(to the nearest? cent)?

  b) What is its price? today???$---(to the nearest? cent)?

  c) What is your total rate of return? (% to two? decimals) if in one year the price is ?$22.92 and the dividend is ?$2.03?? --- %

  d) What is your dividend? yield? --- %

  e) What is your capital gain? (loss) yield? --- %

Answer rating: 100% (QA)

Answer a D0 145 D1 14500 145 21025 D2 21025 145 30486 D3 30486 145 ... View the full answer