Storico Co. just paid a dividend of $2.15 per share. The company will increase its...
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Storico Co just paid a dividend of $ per share. The company will increase its dividend by percent next year and will then reduce its dividend growth rate by percentage points per year until it reaches the industry average of percent dividend growth, after whcih the company will keep a constant growth rate forever. If the stock price is $ what required return must investors be demanding on the companys stock? Hint: Set up the valuation formula with all the relevant cash flows, and use trial and error to find the unknown rate of return.Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
Storico Co just paid a dividend of $ per share. The company will increase its dividend by percent next year and will then reduce its dividend growth rate by percentage points per year until it reaches the industry average of percent dividend growth, after whcih the company will keep a constant growth rate forever. If the stock price is $ what required return must investors be demanding on the companys stock? Hint: Set up the valuation formula with all the relevant cash flows, and use trial and error to find the unknown rate of return.Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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