What is the price of the stock today

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Reference no: EM132002084

1. Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 30 percent for the next 8 years and then level off to a 7 percent growth rate indefinitely. Required : If the required return is 13 percent, what is the price of the stock today?

2. Greg Lawrence anticipates he will need approximately $227,100 in 12 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today, at an interest rate of 6 percent compounded semiannually? (Do not round intermediate calculations. Round your answer to the nearest cent.)

Reference no: EM132002084

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