Synovec Corporation is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.4 percent, thereafter. The required return is 16 percent and the company just paid a dividend of $2.95. What are the dividends each year for the next four years? What is the share price in three years? What is the current share price?
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Synovec Corporation is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.4 percent, thereafter. The required return is 16 percent and the company just paid a dividend of $2.95. What are the dividends each year for the next four years?
What is the share price in three years?
What is the current share price?
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- A company just paid a dividend of $1.50 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. a. If investors require a return of 8 percent on the company’s stock, what is the current price? What will the price be in three years? b. If investors require a return of 10 percent on the company’s stock, what is the current price? c. In light of your answers to part a and part b, what is the relationship between a stock’s price and the required rate of return? Please use a HP10bii+ Financial CalculatorSynovec Corporation is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growth rate falling off to a constant 6.3 percent, thereafter. If the required return is 15 percent and the company just paid a dividend of $2.90, what is the current share price? Please show equations and what each letter is in the equation means. Thanks!A company has an odd dividend policy. The company will pay a dividend of $3 per share next year and has announced that it will increase the dividend by $5 per share for each of the subsequent four years and then maintains a constant 2% growth rate. If you require a return of 8 percent on the company’s stock. A. How much will you pay for a share today? B. At the price you are willing to pay for, what is the dividend yield in the first year? How to do with steps
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