please answer Question 2 20 pts Given the information in the table, Current dividend $12.00 Growth...

Question

Question

Question 2 20 pts Given the information in the table, Current dividend $12.00 Growth Rate in Dividends 2% Required Return on please answer

Answer 1

Answer #1

Dividend year 2 = current dividend*(1+growth rate)^2 = 12*(1+0.02)^2

=12.48

Price = recent dividend* (1 + growth rate )/(cost of equity - growth rate)

Price = 12.48 * (1+0.02) / (0.06 - 0.02)

Price = 318.36

Answer 2

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