Share
Explore BrainMass

Expected Dividend Increase for the Johnston Company

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?

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