Current Price Assignment | Homework For You
June 9th, 2020
Antiques ‘R’ Us is a mature manufacturing firm. The company just paid a dividend of $12.10, but management expects to reduce the payout by 4.5 percent per year, indefinitely
If you require a return of 11 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price ignment Saved
Fowler, Inc., just paid a dividend of $2.80 per share on its stock. The dividends are expected to grow at a constant rate of 6.75 percent per year, indefinitely. Assume investors require a return of 12 percent on this stock.
a. What is the current price? (Do not round intermediate calculations and round you answer to 2 decimal places, e.g., 32.16.)
b. What will the price be in four years and in sixteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)Get Finance homework help today
