What is the price of this stock if dividend will be paid

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Reference no: EM131919553

1. ?Staton-Smith Software is a new? start-up company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of ?$4.50 with a constant growth rate of 3?%, with the first dividend at the end of year six. The company will be in business for 25 years total. What is the? stock's price if an investor wants

a. a return of 11?%?

b. a return of 15?%?

c. a return of 23?%?

d. a return of 40?%?

2. Singing Fish Fine Foods has a current annual cash dividend policy of ?$3.25. The price of the stock is set to yield a return of 12%. What is the price of this stock if the dividend will be paid

a. for 11 years?

b. for 16 ?years?

c. for 41 ?years?

d. for 60 ?years?

e. for 100 ?years?

f. ?forever?

Reference no: EM131919553

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