D H G Question 4 -- Supernormal Dividend Growth Answer all question parts below. Use...
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D H G Question 4 -- Supernormal Dividend Growth Answer all question parts below. Use blank spaces to perform any necessary calculations. CELL REFERENCE AND USE EXCEL FUNCTIONS APPROPRIATELY. Format appropriately. Leafy Fans Inc. is growing quickly. Dividends are expected to grow at 24% for the next 6 years in a row. Starting in year 7, the growth rate will fall to a constant 6% every year. If the required return is 11% and the company just paid a $3.25 dividend, what is the current share price? Current share price = Year FV PV Answer all question part below. Use blank space to perform any necessary calculations, CELL REFERENCE AND USE EXCEL FUNCTIONS APPROPRIATELY. Format appropriately. 1) Sleep More Corporation has pledged to pay a $10 per share dividend every year indefinitely. If you require an 11% return on your investment, how much will you pay for the company's shares today? Price of a share today (PO) = 2) Refer to part (1). Suppose that SleepMore Corp. instead offered to pay a $3.40 per share dividend next year, and pledged to increase its dividen by 4,5% per year indefinitely. If you still require an 11% return on your investment, how much will you pay for the company's shares today? Price of a share today (PO) =
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