Solution-What is the current price of the shares

What is the current price of the shares

Reference no: EM133016824

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-Amazon announces that it will pay a dividend per share of one dollar within a year. Analysts expect dividends to rise $ 1 a year for another two years. After the third year (when dividends are $ 3 per share), dividend growth is expected to fall to a more moderate long-term growth rate of 6%. If the company's investors achieve a 14% return on equity, what should the share price be?

-Sony just paid a $ 3 dividend on its shares. Your dividend growth rate is expected to be a constant 5% per year indefinitely. Investors require a 16% return on the shares during the first three years, a 14% return in the next three years, and finally an 11% return after that date. What is the current price of the shares?

Reference no: EM133016824

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What is the current price of the shares

Reference no: EM133016824

Reference no: EM133016824

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