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Investors expect Vincent Inc. to have EPS of $8.00 next year and $12.00 in Year 2 and $14.00 in Year 3. For all years thereafter
Investors expect Vincent Inc. to have EPS of $8.00 next year and $12.00 in Year 2 and $14.00 in Year 3. For all years thereafter investors expect Vincent's earnings to grow annually at a rate of 2%. Vincent Inc. has an Equity Cost of Capital of 10% and a policy of maintaining a constant 80% dividend payout rate. Calculate Vincent Inc's expected dividends for the next three years and their current stock price.
Enter the required values below:
1a. DIV Yr1
1b. DIV Yr 2
1c. DIV Yr 3
1d. Stock price Today.
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