4. Stock Valuation Phased Solutions Inc. has paid the following dividends per share from 2011 to 2020: 2011 $0.07 2012 $0.08 2013 $0.93 2014 2015 2016 $1.10 $1.28 $1.46 2017 $1.59 2018 $1.80 $1.93 2019 2020 $2.11 If you plan to hold this stock for 10 years, believe Phased Solutions will continue this dividend pattern forever, and you want to earn 17% on your investment, what would you be willing to pay per share of Phased Solutions stock as of January 1, 2021?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 8P
Question
4. Stock Valuation
Phased Solutions Inc. has paid the following dividends per share from 2011 to 2020:
2011
$0.07
2012
$0.08
2013
$0.93
2014
2015
2016
$1.10
$1.28
$1.46
2017
$1.59
2018
$1.80 $1.93
2019
2020
$2.11
If you plan to hold this stock for 10 years, believe Phased Solutions will continue this dividend pattern
forever, and you want to earn 17% on your investment, what would you be willing to pay per share of
Phased Solutions stock as of January 1, 2021?
Transcribed Image Text:4. Stock Valuation Phased Solutions Inc. has paid the following dividends per share from 2011 to 2020: 2011 $0.07 2012 $0.08 2013 $0.93 2014 2015 2016 $1.10 $1.28 $1.46 2017 $1.59 2018 $1.80 $1.93 2019 2020 $2.11 If you plan to hold this stock for 10 years, believe Phased Solutions will continue this dividend pattern forever, and you want to earn 17% on your investment, what would you be willing to pay per share of Phased Solutions stock as of January 1, 2021?
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