Problem:
Winter Time Adventures is going to pay an annual dividend of $2.72 a share on its common stock next week. This year, the company paid a dividend of $2.60 a share. The company adheres to a constant rate of growth dividend policy.
Required:
What will one share of this common stock be worth 12 years from now if the applicable discount rate is 9.0 percent?
- $139.82
- $98.56
- $106.61
- $101.90
- $115.30
Note: Please show guided help with steps and answer.