Blackwood, Ltd. just paid a dividend of $1.90 on a common share of its' stock. This dividend is expected to increase by 15% a year for the next two annual dividend payments. The dividend will then grow at a constant annual growth rate of 4% indefinitely. The investor's required rate of return on the share is 8.6% annually. 

Find the price an investor would be willing to pay for this common share today?

Answer rating: 100% (QA)

SOLUTION To calculate the price an investor would be willing to pay for the common share we need to ... View the full answer