Johnson & Johnson (JNJ) Dividend Growth JNJ’s dividends have grown an average of 7.365% over the...

Johnson & Johnson (JNJ) Dividend Growth

JNJ’s dividends have grown an average of 7.365% over the past 11 years. The rate of dividend growth is likely to slow over time, especially if another recession occurs. The last dividend paid was $3.54. Assume dividends will grow 7.0% in year 1 (now to December 2019), 6.5% in year 2, 6.0% in year 3, and 4.5% thereafter.

Require Rate of Return is 7.08%

Using the required rate of return that you calculated and the assumptions above, what is the expected price of Johnson & Johnson stock today?

Please show me how to do it step by step

Thank you

Expert Solution

jeff jeffy answered 1 year ago

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