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8) Last week, Onboard Co. has announced that the next two annual dividends will be in...

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Finance

8) Last week, Onboard Co. has announced that the next two annualdividends will be in the amount of $2.28 and $4.21, respectively.After that, the dividends will increase by 2.93 percent annually.The required return on this stock is 10.35 percent. What is thecurrent price per share? (Hint: draw this out on a timeline.)

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Step1 Dividend for the next 2 years Dividend in Year 1 D1 228 per share Dividend in Year 2 D2 421 per share Step2 The Price of the stock in year 2 P2 Dividend Growth Rate    See Answer
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8) Last week, Onboard Co. has announced that the next two annualdividends will be in the amount of $2.28 and $4.21, respectively.After that, the dividends will increase by 2.93 percent annually.The required return on this stock is 10.35 percent. What is thecurrent price per share? (Hint: draw this out on a timeline.)

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