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1.Lohn Corporation is expected to pay the following dividends over the next four years: $17, $15,...

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Finance

1.Lohn Corporation is expected to pay the following dividendsover the next four years: $17, $15, $10, and $5. Afterward, thecompany pledges to maintain a constant 4 percent growth rate individends forever. If the required return on the stock is 12percent, what is the current share price?

2. A7X Corp. just paid a dividend of $1.30 per share. Thedividends are expected to grow at 35 percent for the next 9 yearsand then level off to a growth rate of 9 percentindefinitely.
If the required return is 14 percent, what is the price of thestock today?

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1.Lohn Corporation is expected to pay the following dividendsover the next four years: $17, $15, $10, and $5. Afterward, thecompany pledges to maintain a constant 4 percent growth rate individends forever. If the required return on the stock is 12percent, what is the current share price?2. A7X Corp. just paid a dividend of $1.30 per share. Thedividends are expected to grow at 35 percent for the next 9 yearsand then level off to a growth rate of 9 percentindefinitely.If the required return is 14 percent, what is the price of thestock today?

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