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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?

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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