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Star Wars Group just paid a dividend of $1.50 per s
2. Star Wars Group just paid a dividend of $1.50 per share on its stock. The dividends are expected to grow at a constant rate of 10% per year, indefinitely. If investors require 15% annual return on this stock, the current stock price shall be ________. a. $30 b. $33 c. $35 d. $40 e. $43 3. Based on the previous information from Q2, seven years from now the stock price of Star Wars Group shall be ________. a. $52.32 b. $58.46 c. $64.31 d. $72.50 e. $77.95
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******* ******** Do * ********* growth **** * = *********** **** ** ****** Ke = ********** ***** ***** ** * Do*(1+g)^1 * (Ke-g)Po = 150*(1+10%) * **** * **** **** *** / 5% ****** (Option ******* **** * ***** **** now ** * Do*(1+g)^8 * (Ke-g)>> 15*(1+10%)^8 * **** * **** =$6431 ******* **