Problem:
Walgreen Co. (WAG) paid a $0.15 dividend per share in 2000, which grew to $0.27 in 2005. This growth is expected to continue.
Required:
Question: What is the value of this stock at the beginning of 2006 when the required return is 14.5 percent?
- $12.03
- $11.35
- $14.96
- $17.83
Note: Show supporting computations in good form.