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Todays date is March 30, 2016. E-Pay, Inc., stock pays a dividend every year on March 29. The most recent dividend was R1.50 per share.
Todays date is March 30, 2016. E-Pay, Inc., stock pays a dividend every year on March 29. The most recent dividend was R1.50 per share. You expect the companys dividends to increase at a rate of 25 percent per year through March 29, 2019. After that, dividends will increase at 5 percent per year. Investors require a 14 percent return on E-Pay stock. Calculate the price of the stock on the following dates: March 30, 2016; March 30, 2020; and September 30, 2017.
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