Problem:
Roy's Welding Supplies common stock sells for $22 a share and pays an annual dividend that increases by 6 percent annually. The market rate of return on this stock is 9 percent. What is the amount of the last dividend paid? $0.66 $0.84 $0.68 $0.62 $0.61 Winter Time Adventures is going to pay an annual dividend of $3.02 a share on its common stock next week. This year, the company paid a dividend of $2.90 a share. The company adheres to a constant rate of growth dividend policy.
Required:
Question: What will one share of this common stock be worth 10 years from now if the applicable discount rate is 8.0 percent?
- $118.70
- $112.63
- $126.86
- $117.29
- $108.44
Note: Please answer in proper manner and show all computations