Tattletale News Corp. has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to c

Question

2 years ago

12

Tattletale News Corp. has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to c

ontinue for another 3 years. The last dividend paid was $5. The discount rate is 23% and the steady growth rate after 3 years is 2%. a. What is the capital gain in stock price from year 0 to year 1? (Do not round intermediate calculations. Enter your answer as a dollar amount rounded to 3 decimal places.) Capital gain $
b. Calculate the expected rate of return. (Do not round intermediate calculations. Round your answer to the nearest whole percent.) Expected rate of return %

Business

1 answer:

elixir [45] · Answer 1 · 2022-08-14T13:35:08+03:00

elixir [45]2 years ago

8 0

A.$1.266

B. 24.87%

Explanation: see attached file