lazy days fishing supplies is predicting dividend of $4.00 and $5.00
Question # 00391441
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Updated on: 09/21/2016 03:48 AM Due on: 09/21/2016
Question 1 ) lazy days fishing supplies is predicting dividend of $4.00 and $5.00 in the next two years . After that , Lazy days is predicting that growth will level off at 3% indefinitely . The rate expected in the market place for investment similar to lazy days is 5% .
a) What is the current value of share of lazy days fishing supplies ?
b) What will be the value of a share of LDFS in year 3 ?
Question 2 ) Crafts R Us has issued preferred stock with a constant dividend of $4.50 per share . if the yield on crafts R Us stock is reported to be 7.5% , What is the current value of one share of CRU ?
if instead the yield was 8% , What would be the value of a share of CRU ?
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Solution: lazy days fishing supplies is predicting dividend of $4.00 and $5.00