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Experiencing rapid growth-what is the stock price
Course:- Financial Management
Reference No.:- EM13895649




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Navel County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 15 percent per year for the next 8 years before leveling off at 6 percent into perpetuity. The required return on the company’s stock is 12 percent. If the dividend per share just paid was $1.82, what is the stock price?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price          $  

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $23 in perpetuity, beginning 12 years from now. If the market requires a return of 3.7 percent on this investment, how much does a share of preferred stock cost today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price          $




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