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Author Question: Wei Companys last dividend was $1.98. The dividend growth rate is expected to be constant at 2% for ... (Read 30 times)

Tiffanyanne824

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Question 1

Upton Company’s last dividend was $1.96. Its dividend growth rate is expected to be constant at 20% for 2 years, after which dividends are expected to grow at a rate of 8% forever. Upton’s required return (rs) is 14%. What is Upton’s current stock price?

$43.32


$43.75


$43.90


$44.26



Question 2

Wei Company’s last dividend was $1.98. The dividend growth rate is expected to be constant at 2% for 2 years, after which dividends are expected to grow at a rate of 9% forever. Wei’s required return (rs) is 13%. What is Wei’s current share price?

$47.05


$47.37


$47.88


$48.10



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Marked as best answer by Tiffanyanne824 on Aug 7, 2023

mgranuc

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Tiffanyanne824

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Reply 2 on: Aug 7, 2023
Excellent


tanna.moeller

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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