Heleveton, Inc. currently pays a dividend of $1.20 per share
January 1st, 2018
Heleveton, Inc. currently pays a dividend of $1.20 per share. Dividends are expected to increase at the rate of $0.10 per share for the next eight years. Determine the current value of Heleveton’s common stock to an investor who expects to be able to sell the stock for $28 after 5 years. Assume that the investor requires a 12 percent rate of return on the security.