Question: were supposed to do each question then compare them (why theyre alike and similar) tysm! The Wayne Corporation expects to have a changing dividend policy

were supposed to do each question then compare them (why theyre alike and similar) tysm!
were supposed to do each question then compare them (why theyre alike
and similar) tysm! The Wayne Corporation expects to have a changing dividend

The Wayne Corporation expects to have a changing dividend policy over the next few years starting with the dividend that they just paid of $8.63. In the following year their dividend will grow by 22.8% and in the year after by 12.6%. Following that they expect their dividends to continue growing at a constant rate of 5.6% forever. If the required rate of return for Wayne is 12.7% per year, what is the price today of Wayne shares? Answer to the nearest penny. Answer: JFG stock is expected to pay a dividend of $5.21 a share in one year. Thereafter, the expected annual growth rate of the dividend is 3.1%. Based on the Dividend Growth model, what is the most that you would be willing to pay for a share of JFG stock today if your required rate of return is 11.3% per annum? Answer to the nearest penny

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