Having trouble figure out these question

Question # 00110362 Posted By: kimwood Updated on: 09/30/2015 02:31 PM Due on: 10/30/2015
Subject Economics Topic General Economics Tutorials:
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Hi Tutor,

Having trouble figure out these question, can you help to solve and show details on the following questions,

thank you,

  1. Company Y is expected to produce a level dividend stream of $5 a share. If themarket capitalization is10 percent, what is thecurrent stockprice of Company Y? (Note: The market capitalization is the market consensus estimate of the appropriate discount rate for a firm's cash flow.)
  2. CompanyZ’s earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%, what is the current stock price?
  3. Company Z-prime is like Z in all respects except one: Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings(estimated as $18.00) as dividends. What is Z-prime's stock price?
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  1. Tutorial # 00104789 Posted By: kimwood Posted on: 09/30/2015 02:31 PM
    Puchased By: 3
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    If next year's dividend is $10 ...
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