posted by Heidi on .
1) growth rates
The stock price of the company is $76
investors require a 14% rate of return on similar stocks
If the company plans to pay a dividend of $5.00 next year
the expected growth rate of the company's stock price is ______ percent
2) non constant dividends
A company has just paid a dividend of $13.00 per share.
They will increase the dividend by $6.00 per share for each of the next three years and then never pay another dividend. If you require a 15% return on the company's stock, you will pay $ _________ per share today
see my post above.