Question
A company just paid an annual dividend of $0.60. Dividends are expected to grow by 25% in 1 year and by 20% in the second
A company just paid an annual dividend of $0.60. Dividends are expected to grow by 25% in 1 year and by 20% in the second year. After that, dividends are expected to continue to grow at an annual rate of 10% indefinitely.
For the following questions, give all answers in dollars and cents (i.e. 0.27) rounded to 2 decimal places.
What is the amount of the dividend next year? $_______
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
