This paper circulates around the core theme of Simtek currently pays a $2.50 dividend ( D 0 ) per share. Next year ’ s dividend is expected together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
6. Simtek currently pays a $2.50 dividend ( D 0 ) per share. Next year ’ s dividend is expected… 1 answer below » 6. Simtek currently pays a $2.50 dividend ( D 0) per share. Next year’s dividend is expected to be $3 per share. After next year, dividends are expected to increase at a 9 percent annual rate for 3 years and a 6 percent annual rate thereafter. a. What is the current value of a share of Simtek stock to an investor who requires a 15 percent return on his or her investment? b. If the dividend in year 1 is expected to be $3 and the growth rate over the following 3 years is expected to be only 7 percent and then 6 percent there- after, what will View complete question » 6. Simtek currently pays a $2.50 dividend ( D 0) per share. Next year’s dividend is expected to be $3 per share. After next year, dividends are expected to increase at a 9 percent annual rate for 3 years and a 6 percent annual rate thereafter. a. What is the current value of a share of Simtek stock to an investor who requires a 15 percent return on his or her investment? b. If the dividend in year 1 is expected to be $3 and the growth rate over the following 3 years is expected to be only 7 percent and then 6 percent there- after, what will the new stock price be? View less » Jan 07 2016 10:51 AM