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.

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jeff jeffy answered 2 years ago

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

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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 rs = 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

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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.

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Carnes Cosmetics Co.'s stock price is $39, and it recently paid a $2.25 dividend. This dividend is expected to grow by 16% 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.

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

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The Birdstrom Co. just recently paid a dividend of $2.00 per share. Stock market analysts expect that the growth rate for the dividend will be 40% in year 1, 30% in year 2, 20% in year 3, 15% in year 4, and 10% in year five. After the fifth year, the dividend will grow at a constant rate of 6%. If the required return for Birdstrom is 12%, calculate the current stock price and the expected dividend yield and capital...

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