Questions1. AMT stock just paid a quarterly dividend of $1.62 per share (d0 = XXXXXXXXXXAMT's dividends are expected to grow at a rate of 4% APR compounded quarterly over the next 8 years, and then...

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Answered Same DayNov 10, 2022

Answer To: Questions1. AMT stock just paid a quarterly dividend of $1.62 per share (d0 = XXXXXXXXXXAMT's...

Prateek answered on Nov 11 2022
56 Votes
Question 1
        Inputs
        Dividend Growth Rate (APR)    4%
        Dividend Growth Rate (EAR)    4.06%
        Require
d Rate (APR)    12%
        Required Rate (EAR)    12.55%
        Quarterly Dividend ($/share)    1.62
        Annual Dividend    6.48
        Solution
        Time    Dividend    PVIF    PV of Dividend
        0    6.4800    1.0000
        1    6.7431    0.8885    5.9912
        2    7.0169    0.7894    5.5392
        3    7.3018    0.7014    5.1214
        4    7.5983    0.6232    4.7350
        5    7.9068    0.5537    4.3778
        6    8.2279    0.4919    4.0476
        7    8.5620    0.4371    3.7422
        8    8.9096    0.3883    3.4599
        Terminal    70.9880        27.5673
                Current Stock Price    64.58
Question 2
        Inputs
        Loan Amount    30,000
        Monthly Payment    625
        Time to Pay (in Years)    6
        Solution
        Monthly Rate    1.20%
        Annual...
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