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Damell What about Kraft Heinz. They currently pay an annual dividend of $5.45 and we expect that to grow at a constant rate of
Damell What about Kraft Heinz. They currently pay an annual dividend of $5.45 and we expect that to grow at a constant rate of 3.2%. Assuming the market requires a(n) 9.6% return from Kraft Heinz, what is their stock worth? (Hint: Round intermediate calculations and answer to 2 decimal places) Correct! David Salas $87.88 It seems risky to assume they will always increase their dividend in the future. Darnell Good point. How much is their stock worth if they were to stop growing their dividend at 3.2% after 3 years and instead grow at 2.1% after that, indefinitely? (Hint: Round intermediate calculations and answer to 2 decimal places)
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