What is expected dividend per share

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

D1 = $ ____

D2 = $____

D3 = $____

D4 = $_____

D5 = $_______

2. An analyst just estimated next year's earnings for Zippy Corp to be $5.00. If the stock normally trades at a P/E of 20, Zippy should be trading at a price close to:

a. $5

b..$20

c. $4

d. $100

e. not enough information

Reference no: EM132010285

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