Question

FIA Industries just paid a dividend of $ 1.5 a share (i.e., D0 = 1.5 ). The dividend is expected to grow 10 % a year for the next 3 years and then at 4 % a year thereafter. What is the expected dividend per share for year 6 (i.e., D 6 )? Round your answers to two decimal places.

Boehm Incorporated is expected to pay a $ 1.5 per share dividend at the end of the year (i.e.,D1). The dividend is expected to grow at a constant rate of 3 % a year. The required rate of return on the stock, r, is 12 %. What is the value per share of the company's stock? Round your answer to two decimal places.

Columbus Manufacturing's stock currently sells for $ 25.28 a share. The stock just paid a dividend of $3.50 a share (i.e.,D0). The dividend is expected to grow at a constant rate of 4 % a year. What stock price is expected one year from now (P1)? Round your answer to two decimal places.

Answer 1

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