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7. With The Flow Inc. just paid its annual dividend of $2 a share (Divo). The company announced that all future dividends would increase by
7. "With The Flow" Inc. just paid its annual dividend of $2 a share (Divo). The company announced that all future dividends would increase by 3 percent annually. Using Gordon's DDM, what is the price you should pay to purchase a share of this stock today (P0) and a year from now (P1) ? You require a 12 percent rate of return. (a) $22.89,$23.58 (b) $22.89,$22.89 (c) $22.22,$22.22 (d) $22.22,$22.89
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