Atlas Mines has adopted a policy of increasing the annual dividend on its common stock at...
Atlas Mines has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 2.75 percent annually. The firm just paid an annual dividend of $1.67. What will the dividend be six years from now?
Homework Answers
D6 = D0(1+G)^6
D6 = 1.67(1+0.0275)^6
D6 = 1.67*1.1767
D6 = 1.9652
| D0 | 1.67 |
| D1 | 1.72 |
| D2 | 1.76 |
| D3 | 1.81 |
| D4 | 1.86 |
| D5 | 1.91 |
| D6 | 1.97 |
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