Afton Products currently pays a dividend of $4 per share on its common stock a If Afton Products plans to increase its dividend at a rate of 5 per year indefinitely, what will be the dividend per share in 10 years b If Afton Products ' dividend per share is expected to be $5 87 per share at the end...

a A dividend growing at a constant rate g will be worth the foll ...

Afton Products currently pays a dividend of $4 per share on its common stock. a. If Afton

Question:

Afton Products currently pays a of $4 per share on its common stock.
a. If Afton Products plans to increase its at a rate of 5% per year indefinitely, what will be the per share in 10 years?
b. If Afton Products' per share is expected to be $5.87 per share at the end of five years, at what annual rate is the expected to grow?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...