What would the expected dividends be worth today

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Question - You are considering the purchase of Yudee Ha, Inc. The firm just paid a dividend of P4.85 per share. The stock is selling for P135 per share. Security analyst agrees with top management in projecting steady growth of 11% in dividends and earnings ovewr the foreseeable future. Your required rate of return for stock of this type is 17.5%. If you were to purchase and hold the stock for three years, what would the expected dividends be worth today?

Reference no: EM133168515

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