five years from now if dividends grow at a constant 3%?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Stock currently trades at $30 with a dividend yield of 5%. What will be the expected dividend
five years from now if dividends grow at a constant 3%?
Transcribed Image Text:Stock currently trades at $30 with a dividend yield of 5%. What will be the expected dividend five years from now if dividends grow at a constant 3%?
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In this problem we have to calculate future value dividend at growth rate.

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