Hello, for corporate finanace, can you please show me each step to solving this problem without using excel? Coffe Roasters Ltd. are expected to pay quarterly dividends (starting in three months) of $0.50per share. The dividend amount will remain constant for the foreseeable future. Giventhe risk inherent in Coffee Roasters shares, the required expected return for investors is 15% per year(effective). What is the price of one share of Coffee Roasters stock? What would be the price of one share of its stock if the next dividend is 1 month away?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 8P
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Hello, for corporate finanace, can you please show me each step to solving this problem without using excel?

Coffe Roasters Ltd. are expected to pay quarterly dividends (starting in three months) of $0.50
per share. The dividend amount will remain constant for the foreseeable future. Given
the risk inherent in Coffee Roasters shares, the required expected return for investors is 15% per year
(effective).

What is the price of one share of Coffee Roasters stock?

What would be the price of one share of its stock if the next dividend is 1 month away?

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