What is the dividend growth rate

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Reference no: EM131860272

1. Xytex Products just paid a dividend of $2.37 per share, and the stock currently sells for $34. If the discount rate is 10 percent, what is the dividend growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

2. Netscrape Communications does not currently pay a dividend. You expect the company to begin paying a $3.2 per share dividend in 8 years, and you expect dividends to grow perpetually at 4.2 percent per year thereafter. If the discount rate is 15 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM131860272

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