Cascade Industries Inc. intends to pay a common stock dividend of $3.18 one year from today and the firm anticipates that the dividend will continue to grow at a rate of 2% per year indefinitely. If the firm has a 13% required rate of return, what is the current price per share of stock?

Answer rating: 100% (QA)

Step 1 Calculate the expected dividend in one year The expected dividend in one year is 318 1 2 325 ... View the full answer