Question
Distant Groves announced today that it will begin paying annual dividends next year. Dividends for the first three years will be $2.15, $3.20, and $4.27
Distant Groves announced today that it will begin paying annual dividends next year. Dividends for the first three years will be $2.15, $3.20, and $4.27 a share, respectively. After that, dividends are projected to increase by 5 percent per year. What is one share of this stock worth today at a required return of 12 percent?
| A. | $64.86 | |
| B. | $53.10 | |
| C. | $45.17 | |
| D. | $34.55 |
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Year 4 dividend 427 105 44835 Value at year 3 D...
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Fundamentals of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
11th edition
77861701, 978-0077861704
