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What required rate of return does this represent

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Problem - Sonangol has recently gone public. Being a growth company, it is not expected to pay a dividend for the first five years. After then, the market expects Sonangol to pay an annual dividend 1.00 per share, with no growth. If the required return is 10%, what is the current stock price?

HW Holdings expects to pay out an annual dividend of 1.50 per share and market analysts are expecting an indefinite growth of 7%. Currently the stock is trading at $25 per share. What required rate of return does this represent in an efficient market?

Reference no: EM132968200

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