Determine the current value per share


Sander's Supplies has paid the constant dividend of $2.15 share for the past 20 years. Yesterday, the firm announced that dividend will increase next year by five percent and will stay at level for three years, after which time the dividends will raise by 4 percent annually. The required return upon this stock is 9 percent. Determine the current value per share? Show your calculations.

A) $43.49

B) $56.42

C) $54.07

D) $41.97

E) $48.82

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Finance Basics: Determine the current value per share
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