How many total dollars of dividends should joe expect

Reference no: EM132029894

Question: Part A: ABC Incorporated just paid a dividend of $1.59 on its common stock. Joe forecasts that the dividends for ABC will grow at a constant rate of 10.3% over the foreseeable future. Assuming that he is correct, how many total dollars of dividends should Joe expect to receive over the next five years?

Part B: XYZ common stock is expected to pay a dividend of $2.58 next year, and that dividend grows at a constant rate of 9.4 percent. If the current price of XYZ common stock is $20.25, then what is the expected rate of return for this stock, based on the Discounted Cash Flow model?

Reference no: EM132029894

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