Xyz inc just paid 200 dividend dividends are expected to


XYZ, Inc. just paid $2.00 dividend. Dividends are expected to grow at a 20% rate for the next five years. After that, the company has stated that the annual dividend will be $2.50 per share indefinitely. The required rate of return is 10%.

(a) What is this stock worth to you per share today?

(b) What is the expected stock price next year?

(c) What is the expected stock price 20 years from today?

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Financial Management: Xyz inc just paid 200 dividend dividends are expected to
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