Waterman Company has had a fantastic growth of 22 percent per year, but this growth rate is

Question:

Waterman Company has had a fantastic growth of 22 percent per year, but this growth rate is expected to fall to 6 percent in the near future and then continue at that rate for a long time. Shareholders expect a 17 percent annual rate of return and a dividend of $0.75 next year. What is the share price of Waterman's common stock?

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...

Fantastic news! We've Found the answer you've been seeking!