What stock price is expected one year from now

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1. Terrell Enterprises recently paid a dividend, D0, of $1.50. It expects to have nonconstant growth of 25% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 12%. What is the firm's intrinsic value today?

2. Jamison Insurance's stock currently sells for $16.00 a share. It just paid a dividend of $0.60 a share (that is, D0=$0.60). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected one year from now? (Answer to the nearest cent. i.e. one thousand dollars would be entered 1000.00)

Reference no: EM132003307

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