Pay today for one share of the company common stock

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Reference no: EM131083093

klein company just paid a 2.00 annual dividend per share to its common shareholders. Future dividends are epxected to grow at a rate of 8% for each of the next 2 years, and then, at a constant rate of 5% from this point on. If an investor's required rate of return is 11%, what price should the investor be willing to pay today for one share of the company's common stock? What price should the investor be willing to pay 4 years from today for one share of the company's stock ?

Reference no: EM131083093

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