Problem: Hurricane travel service , Inc. just issued a dividend of $3.15 pers share . Hurricane is expected to have a phenomenal in the next two years (22%) and then level off to a constant 5.2 % growth after that . The rate expected in the market place for investment similar to hurricane is 7%. Support your statements with examples
Required:
Question 1: What is the current value of a share of hurricane travel service , Inc.?
Question 2: What will the dividend be in year three?
Question 3: What will the share value be in year four?