Ziggs Corporation will pay $3.85 per share dividend next year. The company pledges to increase its dividend by 4.75 percent per year, indefinitely. If you require a 12 percent return on your investment, how much will you pay for the company's stock today?
The stock price of Jenkins co. is $53. Investors require as 12 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.15 next year, what growth rate is expected for the company's stock price?