The company plans on increasing its dividend by 10 percent, Ask an Expert

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Fiesta Meals is expected to pay an annual dividend of $1.60 a share next year. The company plans on increasing its dividend by 10 percent, 7 percent, and 5 percent a year for the next 3 years, respectively. After that, the growth rate will be held to 3 percent per year. What is one share of this stock worth to you today if you require a 15 percent rate of return?

a. $15.28

b. $14.79

c. $15.03

d. $13.87

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M953022

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