Question Help Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the following per-share dividends: Year Dividend per share 2019 2018 2017 2016 2015 $2.49 2.24 1.83 1.22 1.53 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 19% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.49.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the following per-share dividends:
Year
Dividend per share
2019
2018
2017
2016
2015
$2.49
2.24
1.83
1.22
1.53
Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 19% required rate of return to find the value of Seagate's stock
immediately after it paid its 2019 dividend of $2.49.
Transcribed Image Text:Question Help Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the following per-share dividends: Year Dividend per share 2019 2018 2017 2016 2015 $2.49 2.24 1.83 1.22 1.53 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 19% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.49.
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