Tattletale News Corp. has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years.   a. If the last dividend paid was $4, what will the next dividend be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)           b. If the discount rate is 17% and the steady growth rate after 3 years is 2%, what should the stock price be today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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Tattletale News Corp. has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years.

 

a. If the last dividend paid was $4, what will the next dividend be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

 

 

 

 

b. If the discount rate is 17% and the steady growth rate after 3 years is 2%, what should the stock price be today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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