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What is current price of the stock

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Question - Boomer Products Inc manufactures "no inhale" cigarettes. As there target customers age and pass on, sales of the products are to decline. Thus, demographics suggests that earning and dividend will decline at a rate of 5% annually forever. The firm just paid a dividend of $4 given a required return is 10%, what is current price of the stock?

Boo Daddy is a relatively new firm that appears to be on the road to great success. The company paid their first annually dividend today in the amount of $0.15 a share. The company plans to double each annual dividend payment for the next four years. After that time, they are planning on paying a constant dividend of $2.50 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 10%?

Reference no: EM132562920

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