What is the current share price and required return

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1. Far Side Corporation is expected to pay the following dividends over the next four years: $3, $6, $11, and $6. Afterward, the company pledges to maintain a constant 0.01 growth rate in dividends forever. If the required return on the stock is 0.13, what is the current share price? Answer with 2 decimals

2. The next dividend payment by Hot Wings, Inc., will be $3.66 per share. The dividends are anticipated to maintain a 0.06 growth rate forever. If the stock currently sells for $45 per share, what is the required return? Answer with 4 decimals.

Reference no: EM132017284

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