Posted by Caitlin on Monday, April 2, 2012 at 3:13pm.
The Isberg Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.25, the market risk premium is 5.00%, and the riskfree rate is 4.00%. What is the company's current stock price, P?
Nachman Industries just paid a dividend of D0 = $1.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this lowrisk stock is 9.00%. What is the best estimate of the stock’s current market value?

Finance  Anonymous, Wednesday, December 3, 2014 at 7:46am
19.08
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