Chen Inc. announced today that it will begin paying annual dividends. The first dividend will be paid
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Chen Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.75 a share. The following dividends will be $1.00, $1.10, and $1.20 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3% per year. How much are you willing to pay to buy one share of this stock if your desired rate of return is 6%?
Related Book For
Financial Accounting
ISBN: 978-1259222139
9th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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