Given for Hot Wing Inc.,
Next dividend D1 = $4.05
dividend growth rate g = 3%
Current price of stock P0 = $53
Using constant dividend growth model, price of stock today is
P0 = D1/(Ke-g)
So, 53 = 4.05/(Ke-0.03)
=> Ke = 10.64%
The next dividend payment by Hot Wings, Inc., will be $4.05 per share. The dividends are...
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