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DPS CALCULATION Weston Corporation just paid a dividend of $2.5 a share (i.e., D

ID: 2792463 • Letter: D

Question

DPS CALCULATION

Weston Corporation just paid a dividend of $2.5 a share (i.e., D0 = $2.5). The dividend is expected to grow 11% 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 $2.5 a share (i.e., D0 = $2.5). The dividend is expected to grow 11% 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 = $ ________

Explanation / Answer

D1 (2.5*1.11)=2.78 D2 (2.78*1.11)=3.08 D3 (3.08*1.11)=3.42 D4 (3.42*1.03)=3.52 D5 (3.52*1.03)=3.63