1. 3M Company's 2023 dividend is $6.00. The growth rate is expected to be 3.0% for...
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1. 3M Company's 2023 dividend is $6.00. The growth rate is expected to be 3.0% for 2024. The required return is 8.75%. What is the forecasted price for 3M? 6*(1+.03) 6.18 6.18/.0875-.03 Forecasted Price is $107.48 2. What is the required return for 3M if the current stock price is $100.27 and the growth rate increases to 4.00%? 3. Should 3M increase dividends by 4.00%? What concerns would the CFO have about the increase? 1. 3M Company's 2023 dividend is $6.00. The growth rate is expected to be 3.0% for 2024. The required return is 8.75%. What is the forecasted price for 3M? 6*(1+.03) 6.18 6.18/.0875-.03 Forecasted Price is $107.48 2. What is the required return for 3M if the current stock price is $100.27 and the growth rate increases to 4.00%? 3. Should 3M increase dividends by 4.00%? What concerns would the CFO have about the increase?
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Answer rating: 100% (QA)
To calculate the forecasted price for 3M we can use the dividend discount model DDM formula Forecasted Price Dividend Required Return Growth Rate Give... View the full answer
Related Book For
Project Management A Managerial Approach
ISBN: 978-0470226216
7th Edition
Authors: Jack R. Meredith, Samuel J. Mantel,
Posted Date:
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