In: Finance
A Corporation announced of its plans to pay: $3 dividend per share in 1 year, $6 dividend per share in 2 years, $9 dividend per share in 3 years, after which the dividend will be increasing at a constant annual growth rate of 5 percent. The rate of return for this company is 12%. Calculate the value of one share of its stock. |
Part of the calculation will be finding the Present Value of a
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…with the first dividend being
(Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 100.23.) The final numerical answer to this problem is: |