What is one share of this stock worth to you today

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Reference no: EM132014434

1. Winslow and Daughters just paid their annual dividend of $2.20 a share. They recently announced that all future dividends will be increased by 2 percent annually for ever. What is one share of this stock worth to you today if you require a 14 percent rate of return?

2. Beets and Cabbage just paid an annual dividend of $1.20 per share this year. The company announced that future dividends will increase by 2.5 percent annually forever. What is the amount of the expected dividend in year 4?

Reference no: EM132014434

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