Homework Sourse2 Thress Industries just paid a dividend of 150 a share ie D
2.)
Thress Industries just paid a dividend of $1.50 a share (i.e., D0 $1 50). The dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years?
2.)
Thress Industries just paid a dividend of $1.50 a share (i.e., D0 $1 50). The dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years?
2.)
Thress Industries just paid a dividend of $1.50 a share (i.e., D0 $1 50). The dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years?
Solution
Year 1 = $ 1.50 ( 1+0.05)
Year 1 = $ 1.575
year 2 = $ 1.575 ( 1+0.05)
year 2 = $ 1.65
Year 3 = $ 1.65 (1+0.05)
Year 3 = $ 1.73
Year 4 = $ 1.73 ( 1+0.10)
year 4 = $ 1.90
year 5 = $ 1.90 ( 1+0.10)
year 5 = $ 2.09
year 5 =
