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8. Oxygen Optimization stock is currently priced at 65.51 dollars per share. The stock is expected...

8. Oxygen Optimization stock is currently priced at 65.51 dollars per share. The stock is expected to pay annual dividends that are expected to grow by 3.57 percent per year forever starting after the next dividend is paid in 1 year. The expected return on the stock is 13.08 percent per year. What is the dividend expected to be in 8 years?

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Answer #1

growth rate Price Required return (Ke-g)* PO (0.1308-0.0357)*65.51 = $ 6.23 D1*(1+g)^7 6.23*(1+0.0357)^7 $ 7.96

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