Y Co. has a projected dividend of $2.00, has a required rate of return of 8 percent,

Question:

Y Co. has a projected dividend of $2.00, has a required rate of return of 8 percent, and is expected to grow 6 percent a year. Solve for its anticipated stock price?

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...