Expected to pay dividend, Smirnoff Inc. (symbol SMNF) is

Expected to pay dividend

Assignment Help Financial Management

Reference no: EM131502804

Smirnoff Inc. (symbol SMNF) is expected to pay a dividend of $2.00 per share while Southern Comfort Inc (Symbol SOCO) just paid dividends of $3.70 per share. Assume that the growth rate for both are 11.5% for ever. The rate of return for SMNF is 20% while the rate of return for SOCO is 18% Calculate Po:

A. Po for SMNF is $22 Po for SOCO is $58

B. Po for SMNF is $22 Po for SOCO is $60.9

C. Po for SMNF is $23.5 Po for SOCO is $56.923

D. Po for SMNF is $23.5 Po for SOCO is $63.5

E. None of the above.

Please provide calculations

Reference no: EM131502804

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