What is one share of this stock worth to you

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Question - XYZ Firm recently paid $3.00 as an annual dividend. Future dividends are projected at $3.50, $4.00, $4.50, and $5.00 over the next 4 years, respectively. Beginning 5 years from now, the dividend is expected to increase by 4.0 percent annually. What is one share of this stock worth to you if you require a 12.0 percent rate of return on similar investments?

Please show all work. Is it correct to calculate all the Present Values of all future cash flows and that is your answer?

Reference no: EM133030252

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