What would happen to the stock price if investors required a higher return of 15%? (Why would they need a higher return?)
What is the value of CS w/ a current (or recently paid) dividend of $3.00, a growth rate of 10% when investors require a return of 15%?
What is the required return for CS that has a current dividend of $3.00, a projected growth rate of 15% that is selling for $70?
What’s the required return if the stock is selling for $55 a share?
7. Variable Growth Rate Model: VCS = PV dividends + PV future stock priceWhat is the following stock worth to an investor?Current dividend is $2.55Projected 3 yr. super normal growth rate of 25%Growth rate after yr. 3 to fall and remain constant at 10%Required return of 15%SV 3