What is the value of seagate stock

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Question: Seagate Technology is a global leader in data storage solutions and a consistent dividend payer. From 2018 through 2022, Seagate paid the following per-share dividends:

Year    Dividend Per Share
2022   $2.51
2021   $2.29
2020   $1.88
2019   $1.17
2018   $1.56

Assume that the historical annual rate of Seagate dividends is an accurate estimate of the future consistent annual dividend growth rate. Use a 22% required rate of return to find the value of Seagate's stock immediately after it paid its 2022 dividend of $2.51.

What is the value of Seagate's stock?

 

Reference no: EM133369163

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