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A firm is expected to pay a dividend of $2.05 next year. In the next four years, dividends are expected to be $2.20, $2.40, $2.65,
A firm is expected to pay a dividend of $2.05 next year. In the next four years, dividends are expected to be $2.20, $2.40, $2.65, and $2.95, respectively. Financial analysts believe the stock will be at their price target of $140 in five years.
Compute the value of this stock with a required return of 9 percent.
Value of stock =
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