The Wayne Corporation expects to have a changing dividend policy over the next few years starting with
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Question:
The Wayne Corporation expects to have a changing dividend policy over the next few years starting with the dividend that they just paid of $9.99. In the following year their dividend will grow by 13.9% and in the year after by 13%. Following that they expect their dividends to continue growing at a constant rate of 4.4% forever. If the required rate of return for Wayne is 9.3% per year, what is the price today of Wayne shares? Answer to the nearest penny.
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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