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Stock valuation question: Food Inc. just announced it is increasing its annual dividend to $2.50 next year and establishing a policy whereby the dividend will
Stock valuation question:
Food Inc. just announced it is increasing its annual dividend to $2.50 next year and establishing a policy whereby the dividend will increase by 4.00 percent annually thereafter. Assuming the required rate of return is 9.00 percent. (1) What will the stock price per share be three years from now? (2) What will the stock price per share be five years from now?
(3) What will the stock price per share be ten years from now?
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