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problem1: Warr Corporation just paid a dividend of $1.25 a share [i.e., D0 = 1.25. The dividend is expected to grow 12 percent a year for the next 3 years & then at 5% a year thereafter. find out the expected dividend per share for each of the next 5 years? Give your answer to the nearest hundredth.

[A]         D1 =

[B]         D2 =

[C]         D3 =

[D]         D4 =

[E]         D5 =

problem2: Constant growth valuation Thomas Brothers is expected to pay a $3 per share dividend at the end of the year (i.e., D1 = $3). The dividend is expected to grow at a constant rate of 6 percent a year. The required rate of return on the stock, rs, is 19 percent. What is the stock's value per share? Give your answer to the nearest hundredth.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918731

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