Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Dani's just paid an annual dividend of $6 per share. What is the dividend expected to be in five years if the growth rate is 4.2%

Sagot :

Answer:

the dividend expected in five years is $7.37

Explanation:

The computation of the dividend expected in five years is as follows;

As we know that

Future value = Present value × (1 + rate of interest)^time period

Dividend at year 5 = $6 × (1.042)^5

= $6 × 1.228396569

= $7.37

Hence, the dividend expected in five years is $7.37

The same is to be considered

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.