Question 1) lazy days fishing supplies is predicting dividend of $4.00 and $5.00 in the next two years. After that , Lazy days is predicting that growth will level off at 3% indefinitely. The rate expected in the market place for investment similar to lazy days is 5%.
a) What is the current value of share of lazy days fishing supplies?
b) What will be the value of a share of LDFS in year 3?
Question 2) Crafts R Us has issued preferred stock with a constant dividend of $4.50 per share. If the yield on crafts R Us stock is reported to be 7.5% , What is the current value of one share of CRU?
if instead the yield was 8%, What would be the value of a share of CRU?