Question

Weston Corporation just paid a dividend of $3.75 a share (i.e.,
D_{0} = $3.75). The dividend is expected to grow 8% a year
for the next 3 years and then at 3% a year thereafter. What is the
expected dividend per share for each of the next 5 years? Round
your answers to two decimal places.

d1=

d2=

d3=

d4=

d5=

Answer #1

d1= | d0 * ( 1 + growth rate) |

3.75 * (1 + 8%) | |

4.05 | |

4.05 (Rounded Off) | |

d2= | d1 * ( 1 + growth rate) |

4.05 * (1 + 8%) | |

4.374 | |

4.37 (Rounded Off) | |

d3= | d2 * ( 1 + growth rate) |

4.374 * (1 + 8%) | |

4.72392 | |

4.72 (Rounded Off) | |

d4= | d3 * ( 1 + growth rate) |

4.72392 * (1 + 3%) | |

4.8656376 | |

4.87 (Rounded Off) | |

d5= | d4 * ( 1 + growth rate) |

4.8656376 * (1 + 3%) | |

5.011606728 | |

5.01 (Rounded Off) |

Weston Corporation just paid a dividend of $1.25 a share (i.e.,
D0 = $1.25). The dividend is expected to grow 12% a year for the
next 3 years and then at 3% a year thereafter. What is the expected
dividend per share for each of the next 5 years? Round your answers
to two decimal places.
D1=
D2=
D3=
D4=
D5=

DPS CALCULATION
Weston Corporation just paid a dividend of $1.5 a share (i.e.,
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D1 = $
D2 = $
D3 = $
D4 = $
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