Wilmur Corporation has announced that it will pay its first annual stock dividend of $1.05 per share exactly two years from today.Analysts estimate that this dividend will grow by 1.5% per year in perpetuity and that the stock has a discount rate of 6%.What is the present value of a share of SETAB stock if you value it based on the discounted dividends investors expect to receive?

Answer rating: 100% (QA)

To calculate the present value of a share of SETAB stock based on the discounted divide... View the full answer