Winston Co. has a company policy of increasing its dividend by 2.5 percent annually. What will...
Winston Co. has a company policy of increasing its dividend by 2.5 percent annually. What will the annual dividend be 3 years from now if the last dividend per share was $2.80 per share?
Homework Answers
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
Hence
D3=$2.8*(1.025)^3
=$3.02(Approx).
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