A stock you are evaluating just paid an annual dividend of $3.00. Dividends have grown...
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Accounting
| A stock you are evaluating just paid an annual dividend of $3.00. Dividends have grown at a constant rate of 1.3 percent over the last 15 years and you expect this to continue. |
| a. | If the required rate of return on the stock is 13.1 percent, what is its fair present value? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
| Fair present value | $ |
| b. | If the required rate of return on the stock is 16.1 percent, what should the fair value be four years from today? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
| Expected fair value | $ |
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