Synovec Corporation is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.4 percent, thereafter. The required return is 16 percent and the company just paid a dividend of $2.95. What are the dividends each year for the next four years? What is the share price in three years? What is the current share price?
Synovec Corporation is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.4 percent, thereafter. The required return is 16 percent and the company just paid a dividend of $2.95. What are the dividends each year for the next four years? What is the share price in three years? What is the current share price?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Synovec Corporation is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.4 percent, thereafter. The required return is 16 percent and the company just paid a dividend of $2.95. What are the dividends each year for the next four years?
What is the share price in three years?
What is the current share price?
Please answer fast i give upvote.
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