The company is planning on paying 150 175 and 180 a share


Diet for you paid an annual dividend of $1.18 a share last month. The company is planning on paying $1.50, $1.75, and $1.80 a share over the next 3 years, respectively. After that, the dividend will be constant at $1.50 per share per year.

What is the market price of this stock if the required rate of return is 10.5 percent? 

Solution Preview :

Prepared by a verified Expert
Finance Basics: The company is planning on paying 150 175 and 180 a share
Reference No:- TGS01510848

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)