Johnson Inc.'s first dividend of $2 per share is expected to be paid 5 years from...

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Johnson Inc.'s first dividend of $2 per share is expected to be paid 5 years from today. From then on, dividends will grow by 7.5% per year for 3 years. After then, dividends will decline by 1.5% per year in perpetuity. Assume that Johnson's required rate of return is 8.9%. What is the price of a share of Johnson today? The price of a share of Johnson today is $ (Note: please retain at least 4 decimal places in your calculations and at least 2 decimal places in your final answer.) Johnson Inc.'s first dividend of $2 per share is expected to be paid 5 years from today. From then on, dividends will grow by 7.5% per year for 3 years. After then, dividends will decline by 1.5% per year in perpetuity. Assume that Johnson's required rate of return is 8.9%. What is the price of a share of Johnson today? The price of a share of Johnson today is $ (Note: please retain at least 4 decimal places in your calculations and at least 2 decimal places in your final answer.)

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Heres how to calculate the price of a share of Johnson Inc today Step 1 Separate the Dividend Growth ... View the full answer