2.) Thress Industries just paid a dividend of $1.50 a share (i.e., D0 $1 50). Th

Question

2.)
Thress Industries just paid a dividend of $1.50 a share (i.e., D0 $1 50). The dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years? 2.)
Thress Industries just paid a dividend of $1.50 a share (i.e., D0 $1 50). The dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years? 2.)
Thress Industries just paid a dividend of $1.50 a share (i.e., D0 $1 50). The dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years?

Explanation / Answer

Year 1 = $ 1.50 ( 1+0.05)

Year 1 = $ 1.575

year 2 = $ 1.575 ( 1+0.05)

year 2 = $ 1.65

Year 3 = $ 1.65 (1+0.05)

Year 3 = $ 1.73

Year 4 = $ 1.73 ( 1+0.10)

year 4 = $ 1.90

year 5 = $ 1.90 ( 1+0.10)

year 5 = $ 2.09

year 5 =

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