Calculate CCE's share price today (P0) ii) Calculate the expected share price three years from today (P3) iii) Calculate the dividend yeild for year 4.
cohen cutting edge limited (CCE) has done it again by creating a vaccine for the novel corona virus. CCE is expected to pay a dividend of $2.15 next year after which dividends should enjoy growth of 17% for 2 years. Dividend growth is then expected to fall to 9% for 1 year before setting at a constant growth of 3% for the foreseeable future. the cost of capital is 22%.
i) Calculate CCE's share price today (P0)
ii) Calculate the expected share price three years from today (P3)
iii) Calculate the dividend yeild for year 4.
PART B
Dolson & Company Limited (D&C) has three
Name Dividends Yeold
Series X 6.5% 10.5%
Series Y 8% 9.8%
Series Z 7.2% 11.1%
Calculate the price for each of the three preferred stocks
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