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What is the current share price

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Pastaja Inc is a company that produces fireworks. Your friend Bill is looking to purchase the company stock, and wants to know what the current share price is. The company is planning to pay a $5 dividend in eight years from now and will increase the dividend 4% per year thereafter. The required rate of return is 11%. What is the current share price?

b) Knockem Corp common stock has a beta of 1.15. Government T-Bills are yielding 3.5% and the expected return on the market index is 11%. The company's cost of capital would be.

Reference no: EM133004628

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