At 14%
Stock value | 15.30 |
At 23%
Stock value | 8.63 |
Workings
Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
Dividend | 1.5 | 1.62 | 1.75 | 1.89 | 2.04 | 2.2 | 2.38 | 2.6 | |
rate | |||||||||
14% | Horizon value = P7=D8/r | 18.57 | |||||||
Stock value | 15.30 | ||||||||
23% | Horizon value = P7=D8/r | 11.30 | |||||||
Stock value | 8.63 |
Fey Fashions expects the following dividend pattern over the next seven years: stock's price today if...
Fey Fashions expects the following dividend pattern over the next seven years: The company will then have a constant dividend of $3.00 forever. What is the stock's price today if an investor wants to earn a. 14%? b. 22%? X iData Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 $1.50 $1.65 $1.82 $2.00 $2.20 $2.42 $2.66 Print Done
P7-9 (similar to) * Question Help Fey Fashions expects the following dividend pattern over the next seven years: E. The company will then have a constant dividend of $3.00 forever. What is the stock's price today if an investor wants to earn a. 17%? b. 20%? a. What is the stock's price today if an investor wants to earn 17%? $ (Round to the nearest cent.) i Data Table (Click on the following icon in order to copy its contents...
it has two questions The company will then have a constant dividend of $1.80 forever. What is the Fey Fashions expects the following dividend pattern over the next seven years: stock's price today if an investor wants to earn a. 16%? b. 22%? a. What is the stock's price today if an investor wants to earn 16%? $ (Round to the nearest cent.) i Data Table - X (Click on the following icon in order to copy its contents into...