Question: Please be sure about answer. Got it wrong thanks. Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and

Please be sure about answer. Got it wrong thanks. Common stock value:Please be sure about answer. Got it wrong thanks.

Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a consistent dividend payer. From 2018 through 2022, Seagate paid the following per-share dividends: Year Dividend per share 2022 $2.48 2021 2.22 2020 1.78 2019 1.23 1.49 2018 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 19% required rate of return to find the value of Seagate's stock immediately after it paid its 2022 dividend of 52.48. The value of Seagate's stock is $13.58. (Round to the nearest cent.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!