Hung-Dinh-1445171-Assignment 5_FIN 3331.docx - Student...

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Student Name: Dinh Viet HungID: 1445171Instructor: Dr. William Cheng.Course: FIN3331 - Managerial FinanceASSIGNMENT 5 – CHAPTER 99.1 DPS CALCULATION Warr Corporation just paid a dividend of $1.50 a share (that is,D01⁄4 $1.50). The dividend is expected to grow 7% a year for the next 3 years and then at5% a year thereafter. What is the expected dividend per share for each of the next 5 years?
9.2 CONSTANT GROWTH VALUATION Thomas Brothers is expected to pay a $0.50 pershare dividend at the end of the year (that is, D11⁄4 $0.50). The dividend is expected togrowat a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%.What is the stock’s current value per share?

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Term
Fall
Professor
NOWACKI
Tags
Finance, constant growth stock

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