3. The Brothers Corporation just paid an annual dividend of AED 4 per share on its common stock. The dividend is expected to grow at a rate of 16 percent over the next four years It will then grow at...

3. The Brothers Corporation just paid an annual dividend of AED 4 per share on its common stock. The dividend is expected to grow at a rate of 16 percent over the next four years It will then grow at a normal, constant rate of 9 percent for the foreseeable future. The required rate of return is 12 percent . Compute the current value of the stock 4. LMG has an annual cash dividend policy that raises the dividend each year by 4%. Last year’s dividend was $0.50 per share. What is the price of this stock if a. an investor wants a 6% return? b. an investor wants an 8% return? 5.The North Corporation has a current annual cash dividend policy of AED 3.60. The price of the stock is set to yield a 10% return. What is the price of this stock if the dividend will be paid for 10 years. a. for 8 years? b. for 12 years? c forever?


Extracted text: 3. The Brothers Corporation just paid an annual dividend of AED 4 per share on its common stock. The dividend is expected to grow at a rate of 16 percent over the next four years It will then grow at a normal, constant rate of 9 percent for the foreseeable future. The required rate of return is 12 percent . Compute the current value of the stock 4. LMG has an annual cash dividend policy that raises the dividend each year by 4%. Last year's dividend was $0.50 per share. What is the price of this stock if a. an investor wants a 6% return? b. an investor wants an 8% return? 5.The North Corporation has a current annual cash dividend policy of AED 3.60. The price of the stock is set to yield a 10% return. What is the price of this stock if the dividend will be paid for 10 years. а. for 8 years? b. for 12 years? с. forever?