1 a firm is expected to pay a dividend of 265 next year and, Ask an Expert

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1. A firm is expected to pay a dividend of $2.65 next year and $2.80 the following year. Financial analysts believe the stock will be at their price target of $45 in two years.

Compute the value of this stock with a required return of 12.6 percent.

Value of stock=

2. Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 9.5 percent. LTD’s recent dividend was $0.50.

What is the value of Limited Brands stock when the required return is 11.5 percent?

Value of stock=

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93058069

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