What is the expected value of stock five years from now

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Reference no: EM131966836

1. ABC Inc., is expected to pay an annual dividend of $4 per share next year. The required return is 14.3 percent and the growth rate is 5.3 percent. What is the expected value of this stock five years from now?

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

2. A stock just paid a dividend of D0 = $0.8. The required rate of return is rs = 9.5%, and the constant growth rate is g = 5.3%. What is the current stock price?

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Reference no: EM131966836

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