Dividend-discount model predict high line stock should? sell

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1. Assume Highline Company has just paid an annual dividend of $0.94. Analysts are predicting an 11.6% per year growth rate in earnings over the next five years. After? then, Highline's earnings are expected to grow at the current industry average of 5.3% per year. If? Highline's equity cost of capital is 8.4% per year and its dividend payout ratio remains? constant, for what price does the? dividend-discount model predict High line stock should? sell?

2. In planning your retirement you decide that you need to have $3 million at the beginning of your retirement which is 30 years from today. starting one year from today, you plan to make equal annual payments into a retirement account that will earn 145 INTEREST. how much should you contribute each year in order to reach your target? what if you wait 11 years to start making contributions?

Reference no: EM131990616

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