Campbell Soup Co. (CPB) paid a $0.632 dividend per share in 2003, which grew to $0.76 in

Question:

Campbell Soup Co. (CPB) paid a $0.632 per share in 2003, which grew to $0.76 in 2006. This growth is expected to continue. What is the value of this stock at the beginning of 2007 when the required return is 8.7 percent?

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...