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Company A's stock is currently trading at $30 per share. The stock ' is expected to pay 2 dollars dividend in year 1, 3 dollars
Company A's stock is currently trading at $30 per share. The stock ' is expected to pay 2 dollars dividend in year 1, 3 dollars in year 2, X dollars dividend per year for ever after that. The required rate of return on the stock is 10% per year. What is the amount of the dividend X?
a) $2.54
b) $3.11
c) $1.50
d) $i.43
e) $1.58
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