Franktown meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2 percent annually thereafter. how much will one share of this stock be worth six years from now if the required rate of return is 14.5 percent?

Question

Van Castillo

Business

16 March, 13:28

Franktown meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2 percent annually thereafter. how much will one share of this stock be worth six years from now if the required rate of return is 14.5 percent?

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Lucian Watkins · Answer 1

I guess the correct answer is $15.77

Franktown Meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2% annually thereafter. One share of this stock be worth six years from now is $15.77 if the required rate of return is 14.5%