1. A company’s most recent earnings per share was $2.84 and it paid a dividend of $2.02 per share. You expect the compan

[answerhappygod]

1. A company’s most recent earnings per share was $2.84 and it
paid a dividend of $2.02 per share. You expect the company to
increase its earnings per share over the next year by 1.27% and to
maintain its payout ratio. Your target price for this share in 12
months is $45.16. If your required rate of return is 12.25%, how
much would you be willing to pay for them today?
2. If, however, rather than planning to hold onto you position
in the above company for 12 months, you have an indefinite holding
period. What price would you be willing to purchase this share?