Ans a) Value of share = dividend in next year/ ( required rate - growth rate)
= 1.64 * ( 1+ .05) /(.15 - .05)
= $17.22
Since the number of stock is not given it will be difficult to find value of firm but it will be equal to share price* value of share.
Ans b) Value of share = 1.64 * 1.07 /(.12 - .07)
= $ 35.1
Ans c) Value of share = 1.64 * 1.09/(.16 - .09)
= $25.54
Ans d) Value of share = 1.64 * 1.03 /(.16 - .03)
= $ 12.99
ans e) Value of share = 1.64 * 1.08 /(.16 - .08)
= $ 22.14
Please answer any part Question: 1 pt 1 of 10 (6 complete) This Quiz: 10 pts...