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Simtek currently pays a $2.50 dividends per share next year 's dividend is expected to be...

Simtek currently pays a $2.50 dividends per share next year 's dividend is expected to be $3 per share. after next year , dividends are expected to increase at a 9% annual rate for 3years and a 6% annual rate thereafter.

a. what is the current value of a share of Simtek stock to an investor who requires a 15% return on his or her investment.

b. if the dividend in year 1 is expected to be $3 and the growth rate over the following three years is expected to be only 7% and then 6% thereafter, what will the new stock price be?

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answer to part a

answer to part b

jeff jeffy answered 1 month ago
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