Over the next three years, Distant Groves will pay annual dividends of $1.65, $.172, and $1.80 a share, respectively. After that, dividends are projected to increase by 2.4 percent per year. What is one share of this stock worth today at a required return of 14.3 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Over the next three years, Distant Groves will pay annual dividends of $1.65, $.172, and $1.80 a share, respectively. After that, dividends are projected to increase by 2.4 percent per year. What is one share of this stock worth today at a required return of 14.3 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 8P

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Question

Over the next three years, Distant Groves will pay annual dividends of $1.65, $.172, and $1.80 a share, respectively. After that, dividends are projected to increase by 2.4 percent per year. What is one share of this stock worth today at a required return of 14.3 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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