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iDream company just paid $3 dividend per share. If you are interested in buying the company's and expected 12% return. Find the stock price you are willing to pay for each of the following conditions:

a. If the dividend grows at 6% for each of the next four years, and you expect to sell the stock for $45 four years later.

b. If the dividend grows at 8% each year in the future.

c. If the dividend grows at 10% each year in the future, find the stock price three years later.

d. If the current stock price is $55, your required return is 12%, what is the expected dividend growth rate?.

e. If the current stock price is $60, the expected dividend growth rate is 8%, what is the expected return?

Basic Finance, Finance

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