The firm recently announced that all future dividends

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1. Bug Buster just paid its annual dividend of $1.25 a share. The firm recently announced that all future dividends will be increased by 3 percent annually. What is one share of this stock worth to you if you require an 11 percent rate of return?

2. Jackson Street Repair’s stock currently sells for $55 per share. The market requires a 12% return on the firm’s stock. If the company maintains a constant 5% growth rate in dividends, what was the most recent dividend per share paid on the stock?

Reference no: EM131025768

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