The Brigapenski Co. has just paid a cash dividend of $2 per share. Investors require a 16%

Question:

The Brigapenski Co. has just paid a cash dividend of $2 per share. Investors require a 16% return from investment such as this. If the dividend is expected to grow at a steady 8% per year, what is the current value of the stock? What will the stock be worth in 5 years?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...