Question
I need help checking my work to ensure it is correct or see where I am in error. Thank you in advance. Please show work
I need help checking my work to ensure it is correct or see where I am in error. Thank you in advance. Please show work so I can follow.
XYZ Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.1 a share. The following dividends will be $0.15, $0.20, $0.25, and $0.5 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 3 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 9 percent?
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