Smirnoff Inc. (symbol SMNF) is expected to pay a dividend of $2.00 per share while Southern Comfort Inc (Symbol SOCO) just paid dividends of $3.70 per share. Assume that the growth rate for both are 11.5% for ever. The rate of return for SMNF is 20% while the rate of return for SOCO is 18% Calculate Po:
A. Po for SMNF is $22 Po for SOCO is $58
B. Po for SMNF is $22 Po for SOCO is $60.9
C. Po for SMNF is $23.5 Po for SOCO is $56.923
D. Po for SMNF is $23.5 Po for SOCO is $63.5
E. None of the above.
Please provide calculations