Food Inc. just announced it is increasing its annual dividend to $2.50 next year and establishing a policy whereby the dividend will increase by 4.00 percent annually thereafter. Assuming the required rate of return is 10.00 percent.   (1) What will the stock price per share be five years from now?   (2) What will the stock price per share be ten years from now?    (3) What will the stock price per share be twenty years from now?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Food Inc. just announced it is increasing its annual dividend to $2.50 next year and establishing a policy whereby the dividend will increase by 4.00 percent annually thereafter. Assuming the required rate of return is 10.00 percent.

 

(1) What will the stock price per share be five years from now?

 

(2) What will the stock price per share be ten years from now

 

(3) What will the stock price per share be twenty years from now

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