Problem:
Warr Corporation just paid a dividend of $1.75 a share (that is, D0 = $1.75). The dividend is expected to grow 9% a year for the next 3 years and then at 5% a year thereafter.
Requirement:
Question: What is the expected dividend per share for each of the next 5 years?
- D1 = $
- D2 = $
- D3 = $
- D4 = $
- D5 = $
Note: Please describe comprehensively and provide step by step solution.