Calculate the current stock price

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Reference no: EM131909771

1) Turtle Telecom recently paid a dividend of $2.43 per share to its common stockholders. It is expected that the dividend will continue to grow at a rate of 4.6% per year for the foreseeable future. If investors expect a rate of return of 8.6%, what is the value of the stock? Provide your answer to the nearest $0.01.

2) A stock just paid a dividend of D0 = $0.93. The required rate of return is rs = 9.2%, and the constant growth rate is g = 4.5%. What is the current stock price?

Reference no: EM131909771

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