past six years the dividends of Gamma Corporation have grown from $2.00

jagguarpaw January 10, 2017 0 Comments

 

Question: Over the past six years the dividends of Gamma Corporation have grown from $2.00

Over the past six years the dividends of Gamma Corporation have grown from $2.00 per share to the current level of $2.53 per share. This growth rate is expected to continue for the foreseeable future. What is the value of a share of Gamma Corporation common stock to an investor who requires an 11 percent return on their investment?