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Today's date is January 4, 2022. SmallDog Inc. stock pays a dividend every year on January 3rd. The most recent dividend ( yesterday , on
Today's date is January 4, 2022. SmallDog Inc. stock pays a dividend every year on January 3rd. The most recent dividend (yesterday, on January 3rd) was $3.00 per share. You expect the company's dividends to increase at a rate of 8% per year through January 3, 2025 (for three years). After that, you expect that the dividends will increase by 3% per year. Investors require an 8% return on SmallDog Inc. stock.
What is the dividend on January 3, 2023? (hint: next year!)
What is the price per share on January 4, 2022? (hint: today!)
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