What is current value of one share of the stock for amgen

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Problem 1: Amgen plans on increasing its annual dividend by 15 percent a year for the next four years and then decreasing the growth rate to 2.5 percent per year. The company just paid its annual dividend in the amount of $2.00 per share. What is the current value of one share of this stock if the required rate of return is 17.4 percent?

Option 1: $24.55

Option 2: $25.82

Option 3: $24.06

Option 4: $20.26

Option 5: $22.71

Reference no: EM132832488

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