Author Question: Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ... (Read 65 times)

2125004343 · **on:** Apr 25, 2021

Question 1

Under the constant growth dividend model, the stock price grows at the same rate as the dividends.
◦ true
◦ false

Question 2

Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all payouts occur annually at the end of the year and that we are at the beginning of the year. Analysts forecast that Virtucon's payouts will grow at 3% in perpetuity. Virtucon stockholders require a return of 11%. Virtucon has 2.45B shares outstanding. Which of the following is the closest to the fair price for Virtucon's shares today?
◦ $45
◦ $46
◦ $47
◦ $48
◦ $49

lindahyatt42 · **Reply #1 on:** Apr 25, 2021

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