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Granger Corp stock currently sells for $4829 per share The market requires a 13 percent return on the firms stock If the company maintains a constant 55 percent growth rate dividends what was

Granger Corp. stock currently sells for $48.29 per share. The market requires a 13 percent return on the firm's stock. If the company maintains a constant 5.5 percent growth rate dividends, what was the most recent annual dividend per share paid on the stock? Better Plastics is a mature manufacturing firm. The company just paid a $4 annual dividend, but management expects to reduce the payout by 3 percent per year, indefinitely. If you require a 12 percent return on this stock what will you pay for a share today? Suppose your company needs to raise $28 million and you want to issue 15-year bonds for this purpose. Assume the required return on your bond issue will be 8 percent, and you're evaluating two issue alternatives: an 8 percent annual coupon and a zero coupon bond. Your company's tax rate is 3 percent. In 15 years, what will your company's repayment be if you issue the coupon bonds? What you issue the zeroes? (Assume annual compounding on the zero coupon bond).

Apr 04 2020 View more View Less

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