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.

Expert Solution

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

jeff jeffy answered 1 year 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

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 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

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.

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. %

The Birdstrom Co. just recently paid a dividend of $2.00 per share. Stock market analysts expect...

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...

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $2.00 per share on its stock. The...

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $2.00 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Investors require a return of 12 percent on the company's stock. A. What is the current stock price? B. What will the stock price be in three years? C. What will the stock price be in 12 years?

Question