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ABC stock just paid dividend $0.55 per share, and future dividends are expected to grow at...

ABC stock just paid dividend $0.55 per share, and future dividends are expected to grow at a constant rate of 1.69% every year. The required return for the ABC stock is 20.99%.

What is the expected annual dividend amount (per share) ABC stockholders expect to receive next year?

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Expert Solution

  

_______________________________

_______________________________

D1 = D0 * (1+G)

D0 = 0.55

G = 0.0169

D1 = 0.55 * (1+0.0169)

= 0.559295

jeff jeffy answered 2 years ago
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