Question
5. Microsoft currently pays a dividend of $2.30. The companys goal is to increase dividends by 4% each year. You, the investor, require a rate
5. Microsoft currently pays a dividend of $2.30. The companys goal is to increase dividends by 4% each year. You, the investor, require a rate of return of 12%.
5a. What is the current price you would pay now for a share in Microsoft?
5b. What will Microsofts dividend be in five years? What about six years?
5c. What will the price of a share in Microsoft be in five years?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
