What is the expected price of the stock at the end of year

Reference no: EM132077956

Question: 1. SAS Co. will be paying a dividend of $.80 at the end of this year that will grow by 4% per year for the next 5 years. After the 5 year period the dividend is expected to grow 3% for the foreseeable future. What is the value of the stock today (r = 9%)?

2. Unlimited Corp. just paid a $.50 dividend per share and plans to double the dividend each of the next 2 years, and then dividends will grow 5% for the foreseeable future. If r is 10%. what is the expected price of the stock at the end of this year?

Reference no: EM132077956

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