Today, a company paid a dividend in the amount of $2.15 per share. For the next 2

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Today, a company paid a dividend in the amount of $2.15 per share. For the next 2 years, the company is expected to increase its dividend by 15% each year. The company is then expected to have a dividend growth rate that remains constant at 3% forever. Assume investors require a 11.45% return on this stock.

What is the stocks expected price per share 2 years from now? - do not round intermediate calculations

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Sep 16, 2023 09:46 PM

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Today, a company paid a dividend in the amount of $2.15 per share. For the next 2

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To calculate the stocks expected price per share 2 years from now we can use the Gordon Growth Model ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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