woohoo corp paid a $3 dividend today and analysts expect this dividend to grow sustainably at 5%into the future while the discount rate for the stock is 15% what would be the present value of the year5 dividend

Step 1: The calculation of the present value of the dividend of year 5 (D5) AB1Dividend paid32Growth…

Answered: woohoo corp paid a $3 dividend today…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 2P

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woohoo corp paid a $3 dividend today and analysts expect this dividend to grow sustainably at 5% into the future while the discount rate for the stock is 15% what would be the present value of the year 5 dividend