Carnes Cosmetics Co.'s stock price is $43, and it recently paid a $2.75 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $43, and it recently paid a $2.75 dividend. This dividend is expected to grow by 17% for the next 3 years, then grow forever at a constant rate, g; and r_s = 16%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.

IT IS NOT 7.33%, INCORRECTLY ANSWERED

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago

Carnes Cosmetics Co.'s stock price is $57, and it recently paid a $2.00 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $57, and it recently paid a $2.00 dividend. This dividend is expected to grow by 24% for the next 3 years, then grow forever at a constant rate, g; and rs = 12%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.

Carnes Cosmetics Co.'s stock price is $64.34, and it recently paid a $1.25 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $64.34, and it recently paid a $1.25 dividend. This dividend is expected to grow by 19% for the next 3 years, then grow forever at a constant rate, g; and rs = 15%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

Carnes Cosmetics Co.'s stock price is $46, and it recently paid a $1.75 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $46, and it recently paid a $1.75 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, g; and rs = 14%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.

Carnes Cosmetics Co.'s stock price is $40, and it recently paid a $1.00 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $40, and it recently paid a $1.00 dividend. This dividend is expected to grow by 20% for the next 3 years, then grow forever at a constant rate, g; and rs = 11%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.

Carnes Cosmetics Co.'s stock price is $42, and it recently paid a $2.25 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $42, and it recently paid a $2.25 dividend. This dividend is expected to grow by 24% for the next 3 years, then grow forever at a constant rate, g; and rs = 14%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.

Carnes Cosmetics Co.'s stock price is $60, and it recently paid a $3.00 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $60, and it recently paid a $3.00 dividend. This dividend is expected to grow by 21% for the next 3 years, then grow forever at a constant rate, g; and rs = 15%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.

Carnes Cosmetics Co.'s stock price is $57, and it recently paid a $1.75 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $57, and it recently paid a $1.75 dividend. This dividend is expected to grow by 27% for the next 3 years, then grow forever at a constant rate, g; and rs = 12%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places. 6.62% is the wrong answer by the way

NONCONSTANT GROWTH Carnes Cosmetics Co.'s stock price is $71.11, and it recently paid a $2.25 dividend....

NONCONSTANT GROWTH Carnes Cosmetics Co.'s stock price is $71.11, and it recently paid a $2.25 dividend. This dividend is expected to grow by 22% for the next 3 years, then grow forever at a constant rate, g; and rs = 11%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations. %

Belmort Co. just paid a dividend of $2.75. Future dividends are expected to grow by 2.5%...

Belmort Co. just paid a dividend of $2.75. Future dividends are expected to grow by 2.5% per year. If the required return is 8.8%, then what do you expect the price of the stock to be in 3 years? (NOTE: Round your answer to the nearest cent)

NONCONSTANT GROWTH VALUATION Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have...

NONCONSTANT GROWTH VALUATION Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of 18% for 2 years followed by a constant rate of 3% thereafter. The firm's required return is 17%. Q1: How far away is the horizon date? A: The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero. B: The terminal, or horizon, date is the date when the growth rate becomes constant....

Question