Answered

At Westonci.ca, we connect you with experts who provide detailed answers to your most pressing questions. Start exploring now! Join our Q&A platform and get accurate answers to all your questions from professionals across multiple disciplines. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

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

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.