The dividends are anticipated to maintain a 005 growth rate


1. Apocalyptica Corp. pays a constant $11.01 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever. If the required return on this stock is 15 percent, what is the current share price? Answer with 2 decimals (e.g. 45.45).

2. The next dividend payment by Hot Wings, Inc., will be $4.71 per share. The dividends are anticipated to maintain a 0.05 growth rate forever. If the stock currently sells for $20 per share, what is the required return? Anser with 4 decimals (e.g. 0.1234)

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Financial Management: The dividends are anticipated to maintain a 005 growth rate
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