Calculate the current price per share

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1. West Side Co. is expecting the following dividends to be paid over the next 5 years: $7, $6, $5, $4, $3. Afterward, the company pledges to maintain a constant growth rate of 2%, forever. If the required rate of return is 8%, calculate the current share price. (Round to 2 decimals)

2. Clue Co. just paid a dividend of $1.15 per share. The dividends are expected to grow at 25% over the next 7 years, and then the dividends will grow at 2% forever. If investors require a 9% rate of return on their investment, calculate the current price per share? (Round to 2 decimals)

Reference no: EM132643773

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