question archive 1) Apocalyptica Corp
1) Apocalyptica Corp
Subject:FinancePrice: Bought3
1) Apocalyptica Corp. pays a constant $1.11 dividend on its stock. The
company will maintain this dividend for the next 13 years and will then cease paying dividends forever. If the required return on this stock is 14 percent, what is the current share price? Answer with 2 decimals (e.g. 45.45).
2) The next dividend payment by Hot Wings, Inc., will be $3.53 per share.
The dividends are anticipated to maintain a 0.08 growth rate forever. If the stock currently sells for $38 per share, what is the required return? Anser with 4 decimals (e.g. 0.1234)
