A company just paid a dividend of $3.00 per share. Four years ago, the company paid a dividend of $2.00 per share. You expect the dividend payment to continue growing at this same rate indefinitely into the future. If the required rate of return on equity is 14% per year, what would be a fair price for this stock today?

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The Answer of A company just paid a dividend of $3.00 per share. Four years ago, the company paid a dividend of $2.00 per share. You expect the dividend payment to continue growing at this same rate indefinitely into the future. If the required rate of return on equity is 14% per year, what would be a fair price for this stock today?

A Company Just Paid a Dividend of $3