Lumber Blocks is expected to pay an annual dividend of $1.00 a share this coming year....

Lumber Blocks is expected to pay an annual dividend of $1.00 a share this coming year. They are expected to increase their dividend by 50 percent per year for the following two years and then maintain a constant dividend growth rate of 4 percent per year. What is the value of this stock today if the required return is 14 percent?

Select one:

a. $22.05

b. $17.40

c. $19.34

d. $18.69

Solutions

Expert Solution

Ans is c.$19.34

Please upvote if the ans is helpful. Thanks.

jeff jeffy answered 1 year ago

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