Explore BrainMass
Share

Explore BrainMass

    Expected Dividend Increase for the Johnston Company

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Johnston Company will pay an annual dividend of $1.25 next year. The company has increased its dividend by 3.45 percent a year for the past twenty years and expects to continue doing so. What will a share of this stock be worth 13 years from now if the required return is 11 percent?

    © BrainMass Inc. brainmass.com October 10, 2019, 3:45 am ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/expected-dividend-increase-johnston-company-433685

    Solution Summary

    The solution is brief and concise and very easy to follow along. All the steps are clearly shown. It can be easily understood by anyone with a basic understanding of Finance.

    $2.19