What should the stock price be today

Assignment Help Financial Management

Reference no: EM131998038

Tattletale News Corp. has been growing at a rate of 20% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years.

A. If the last dividend paid was $10, what will the next dividend be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Dividend

B. If the discount rate is 21% and the steady growth rate after 3 years is 2%, What should the stock price be today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock Price

Reference no: EM131998038

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