Question
Watson electric has paid a constant dividend of $1.50 a share for the past 100 years. Yesterday, they announced that the dividend will increase next
Watson electric has paid a constant dividend of $1.50 a share for the past 100 years. Yesterday, they announced that the dividend will increase next year by 10 percent and will stay at that level for 2 years, after which time the dividends will increase by 2 percent annually. the required return on this stock is 7 percent. what is the current value per share?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
