Page 1 of 1
A company just paid a dividend of $1.80 per share. You expect the dividend to grow 14% over the next year and 9% two yea
Posted: Wed Mar 30, 2022 3:39 pm
by answerhappygod
- A Company Just Paid A Dividend Of 1 80 Per Share You Expect The Dividend To Grow 14 Over The Next Year And 9 Two Yea 1 (25.73 KiB) Viewed 45 times
A
company just paid a dividend of $1.80 per share. You expect the dividend to grow 14% over the next year and 9% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 5% per year. If the required rate of return is 11% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)