Widget manufacturers inc just paid a 3 per share dividend


Widget Manufacturers Inc. just paid a $3 per share dividend. It is expected that dividends will grow at 10.00% per year for the next 2 years, at 6.00% the third year and 3.00% every year thereafter. Widget’s’ equity beta is 0.90, while the risk-free rate is 3.20% per year and the market risk premium is 6.00% per year. Based on this information, compute the price per share of Widget stock.

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Financial Management: Widget manufacturers inc just paid a 3 per share dividend
Reference No:- TGS02381858

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