Weston Corporation just paid a dividend of $3.75 a share (i.e., Do = $3.75). The dividend is expected to grow 12% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.

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 1P: Thress Industries just paid a dividend of 1.50 a share (i.e., D0 = 1.50). The dividend is expected...
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Weston Corporation just paid a dividend of
$3.75 a share (i.e., Do = $3.75). The dividend
is expected to grow 12% a year for the next 3
years and then at 5% a year thereafter. What is
the expected dividend per share for each of the
next 5 years? Round your answers to two
decimal places.
Transcribed Image Text:Weston Corporation just paid a dividend of $3.75 a share (i.e., Do = $3.75). The dividend is expected to grow 12% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.
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