problem1: Lee Hong Imports paid a $1.00 per share yearly dividend last week. Dividends are expected to rise by 5% annually. What is one share of this stock worth to you today if the appropriate discount rate is 14 percent?
problem2: Angelina's made two statements concerning its common stock today. 1st, the company announced that its next year dividend has been set at $2.16 a share. 2nd, the company announced that all future dividends will increase by 4% yearly. find out the maximum amount you should pay to buy a share of Angelina's stock if your goal is to receive a 10% rate of return?