the qusestions is gonna be similar to these questions.
Arts and Crafts, Inc., will pay a dividend of $6 per share in 1 year. It sells at $60 a share, and firms in the same industry provide an expected rate of return of 15%. What must be the expected growth rate of the company’s dividends?
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Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 5% per year indefinitely. |
| a. |
What price should the stock sell at if the discount rate is 12% |