Stock values and stock valuation

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Stock Valuation

Burkhardt Corp. pays a constant $14.40 dividend on its stock. The company will maintain this dividend for the next six years and will then cease paying dividends forever.

If the required return on this stock is 12 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Share price:

Stock Values

The next dividend payment by Dizzle, Inc., will be $2.90 per share. The dividends are anticipated to maintain a growth rate of 7.75 percent, forever. Assume the stock currently sells for $49.40 per share.

What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131320856

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