Question 7 A company will pay its first dividend 8 years from now, at which...
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Question 7 A company will pay its first dividend 8 years from now, at which point it will pay annual dividends of $2.62 per share forever. If investors require a 7 percent return, what is the current stock price? Answer to the nearest cent and do not include the $ sign. For example, if the price is $100.25, you should enter 100.25 as the answer. Question 8 In one year, a company will pay its annual dividend of $2.85 per share. Then, the company will grow its dividends by 1 percent per year indefinitely. Investors require a 10 percent return. What is the current stock price? Answer to the nearest cent and do not include the $ sign. For example, if the price is $100.25, you should enter 100.25 as the
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