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Homework answers / question archive / Phillips Co
Phillips Co. currently pays no dividend. The company is anticipating dividends of $.02, $.05, $.10, $.20, and $.30 over the next 5 years, respectively. After that, the company anticipates increasing the dividend by 3.5 percent annually. One step in computing the value of this stock today is to compute the value of:
a) P5.
b) P3.
c) P1.
d) P6.
e) P4.
