Banya, Inc., just paid a dividend of $2.0 per share on its stock. The dividends are expected

Question:

Banya, Inc., just paid a dividend of $2.0 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year, indefinitely. If investors require an 11 percent return on Banya stock, what is the current price? What will the price be in three years? In 15 years?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...