Free Motion Enterprises paid a $2 per share annual dividend last week. Dividends are expected to increase by 20 percent in year 1 and 15% in year two. After that dividends are expected to increase by 3 percent annually. What is one share of this stock worth to you today if your required rate of return is 13 percent?

Answer rating: 100% (QA)

To find the value of one share of the stock we need to calculate the present value of expected fu... View the full answer