Calculate the expected future dividend per share of stock

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Reference no: EM131956436

Problem-solving: (a) Calculate the expected future dividend per share of stock for each of the next five years for a firm that uses a 5% constant dividend growth policy and paid a dividend of $2.50 last year.

(b) Using your answers to part (a), calculate the total cost of this dividend policy for each of the next five years, assuming the firm has 50 million shares of common stock, and no preferred stock.

Reference no: EM131956436

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