In: Finance
1.
Given the following information, what is the percentage dividend yield between today and period 1?
Today’s Dividend = |
$3.43 |
Expected Growth rate in dividends = |
2.97 |
Discount Rate (Required return) = |
6.16 |
Calculate your answer to two decimal places (e.g., 2.51)
2.
Given the information in the table, what is the price of the stock in YEAR 1?
Today’s Dividend |
$4.47 |
Discount Rate |
8.31% |
Growth rate in dividends 0 to 1 |
9.90% |
Growth rate in dividends 1 to 2 |
9.11% |
Growth rate in dividends 2 to 3 |
5.60% |
Growth rate in dividends 3 onward |
3.14% |