Inflation rate: 16%, risk free rate: 16,5% Company A: Last period's dividend= 3$ / 5%...
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Inflation rate: 16%, risk free rate: 16,5% Company A: Last period's dividend= 3$ / 5% constant dividend growth / stock price at time 0= 12 $ / risk premium= 10% Company B: Last period's dividend= 2$ / 4% constant dividend growth / stock price at time 0= 15$ / Risk premium=6% Company C: 3 following periods' dividends are 2,5$, 4$, 6$ than constant growth 4% / stock price at time 0=25$ / risk premium= 8% A) Calculate companies' required rate of returns B) Calculate stock prices. Please do not use Excel or financial calculator, show calculations step by step. Thank you.
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