woodson corp plans on paying its first dividend of usd2 50 per share o
Question
Woodson Corp. plans on paying its first dividend of $2.50 per share one year from today,and then will pay an annual dividend. Investors anticipate that the dividend will grow at a rate of 3% per year, and the applicable discount rate is 11%. What should be the price of one share of Woodson Corp. stock today?