Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a consistent dividend payer. From 2018 through 2022. Seagate paid the
following per-share dividends:
Year Dividend per share
2022
2021
2020
2019
2018
$2.53
2.21
1.83
1,24
1.48
Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate, Use a 18% required rate of return to find the value
of Seagate's stock immediately after it paid its 2022 dividend of $2.53.
The value of Seagate's stock is $ (Round to the nearest cent)
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Transcribed Image Text:Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a consistent dividend payer. From 2018 through 2022. Seagate paid the following per-share dividends: Year Dividend per share 2022 2021 2020 2019 2018 $2.53 2.21 1.83 1,24 1.48 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate, Use a 18% required rate of return to find the value of Seagate's stock immediately after it paid its 2022 dividend of $2.53. The value of Seagate's stock is $ (Round to the nearest cent)
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