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Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $19.00,...

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Finance

Leisure Lodge Corporation is expected to pay the followingdividends over the next four years: $19.00, $10.00, $5.20 and$2.40. Afterwards, the company pledges to maintain a constant 3percent growth rate in dividends forever. If the required return onthe stock is 13 percent, what is the current share price? (Do notround intermediate calculations. Round your answer to 2 decimalplaces.)

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3.8 Ratings (546 Votes)
Step1 Dividend per share for the next three years Dividend in Year 1 D1 1900 per share Dividend in Year 2 D2 1000 per share Dividend in Year 3 D3 520 per share Dividend in Year 4    See Answer
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Leisure Lodge Corporation is expected to pay the followingdividends over the next four years: $19.00, $10.00, $5.20 and$2.40. Afterwards, the company pledges to maintain a constant 3percent growth rate in dividends forever. If the required return onthe stock is 13 percent, what is the current share price? (Do notround intermediate calculations. Round your answer to 2 decimalplaces.)

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