1. Mature products Corp produces goods that are mature in their life cycles. they ate expected to pay a dividend in year 1 of $2, 1.50 in year two, and $1 in year 3. after year 3, dividends are expected to decline at a rate of 1% per year. an appropriate required rate of return is 10%. the stock shoulds be worth...
9,10.57, 20, 22.22
2. Midwest airlines is expected to pay a dividend of 7 in the coming year. dividends are expected to grow 15% per year. risk free return is 6 and expected return on mkt portfolio is 14%. the stock has a beta of 3. the return required is.....
10, 18, 30, 42