What value does Investor B place on TopCmises Inc stock

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Q1. Three investors are examining a company called TopCruises Inc. They all require '35 return per year from this company. Investor A believes the firm will pay a dividend of $3 in one year from now, then a dividend of $5 the year after that. For the remaining years the investor believes dividends will grow by 3% each year. Investor B takes a different view, believing that the dividend of $4 (that was just paid yesterday) will grow at a rate 01:4.5'3 each year in perpetuity. Investor C thinks the firm will pay a dividend of $5 in one year from now 1 with dividends growing into perpetuity with a growth rate g. What value does Investor B place on TopCmises Inc stock?

Q2. TSLA stock is now $675. You buy a three months put option with strike price $675 for $93. If in three months TSLA is $525, how much is your total profit/loss?

Reference no: EM132860393

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