Homework answers / question archive / Analysts expect the following dividends from SE Corp

Analysts expect the following dividends from SE Corp

Business

Share With

Analysts expect the following dividends from SE Corp.: a dividend of $2.74 per share will be paid tomorrow. One year from now a dividend of $3.14 will be paid, two years from now a dividend of $3.88, and thereafter dividends are expected to grow at a constant rate of 7% per year permanently. According to the analysts, the cost of equity of the company will remain at 9.7%. The current share price is closest to (nearest cents):