Find the share of common stock

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-A company will pay an annual dividend of $1.30 per share next year. The dividend of this company will grow at a steady rate of 6 percent annually. What is the amount of the expected dividend in year 2?

-A company will pay their annual dividend of $2.30 (Div1) a share next year. All future dividends will be increased by 3 percent annually(infinite horizon). What is one share of this stock worth to you if you require a 12 percent rate of return?

-A company pays a $1.40 dividend every quarter and will maintain this policy forever. What price should you pay for one share of common stock if you want an annual return of 10% on your investment?

Reference no: EM133120850

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