The Webster Company has just paid a dividend of $5 25 per share The company will increase its dividend by 14 percent next year The company will then reduce its dividend growth rate by 3 percent each year until it reaches the industry average of 5 percent growth The company will maintain that divide...

Share stock price of Webster Company The formula for calculation the share price from the ...

The Webster Company has just paid a dividend of $5.25 per share. The company will increase its

Question:

The Webster Company has just paid a of $5.25 per share. The company will increase its by 14 percent next year. The company will then reduce its growth rate by 3 percent each year until it reaches the industry average of 5 percent growth. The company will maintain that growth rate, forever. The required rate of return for the Webster Company is 14 percent. What will a share of stock sell for?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...