Diet for you paid an annual dividend of $1.18 a share last month. The company is planning

Question:

Diet for you paid an annual of $1.18 a share last month. The company is planning on paying $1.50, $1.75, and $1.80 a share over the next 3 years, respectively. After that, the will be constant at $1.50 per share per year. What is the market price of this stock if the required rate of return is 10.5 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...