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    A DPS calculation

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    Thress Industries just paid a dividend of $2.75 a share.The dividend is expected to grow 5% a year for the next 3 years and then at 11% a year thereafter. What is the expected dividend per share for each of the next 5 years?

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    Solution Preview

    Current Dividend = 2.75

    Expected Dividend for Year 1 = 2.75*(1+5%)
    = 2.75*1.05 = $2.89

    Expected Dividend for ...

    Solution Summary

    The solution calculates dividend per share for coming years with given growth rate.