Question

ntegrated Potato Chips just paid a $1 per share dividend. You expect the dividend to grow steadily at a rate of 4% per year. a. What is the expected dividend in each of the next 3 years?

Answer 1

Answer:

1,12 per share

Explanation:

1. Is necessary to apply finnancial tools to calculate the dividends in four years, expressed by the following formula:

Money paid for share today * ( 1 + anual Rate dividend%) ^ investment horizon

1 * ( 1 + 4%) ^ 3 = $ 1,12