Wilkins Industries Pays a current dividend of $6.10 and shareholders require a 12% return. The dividend will grow a...

Question

Question

Answer 1

Answer #1

Using H Model,

Stock Price = [6.10(1.05) + 6.10(3)(0.20 - 0.05)]/(0.12 - 0.05)

Stock Price = $130.71

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Answer 2

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