Thomas Company, just paid a dividend of $6.75 per share. The company will increase its dividend by 25% next year, and then will reduce this dividend growth rate by 5% a year until it reaches the industry average of 5%, after which the company will keep a constant growth rate forever. The required rate of return on Thomas Company stock is 13.75%.a. What is the current price per share for Thomas Company.?b. What is the expected price per share for Thomas Company two years from today?c. What is the expected price per share for Thomas Company three years from today?d. What is the expected price per share for Thomas Company ten years from today

Thomas Company, just paid a dividend of $6.75 per share. The company will increase its dividend by 25% next year, and then will reduce this dividend growth rate by 5% a year until it reaches the industry average of 5%, after which the company will keep a constant growth rate forever. The required rate of return on Thomas Company stock is 13.75%.a. What is the current price per share for Thomas Company.?b. What is the expected price per share for Thomas Company two years from today?c. What is the expected price per share for Thomas Company three years from today?d. What is the expected price per share for Thomas Company ten years from today

Thomas Company, just paid a dividend of $6.75 per share. The company will increase its dividend by 25% next year, and then will reduce this dividend growth rate by 5% a year until it reaches the industry average of 5%, after which the company will keep a constant growth rate forever. The required rate of return on Thomas Company stock is 13.75%.a. What is the current price per share for Thomas Company.?b. What is the expected price per share for Thomas Company two years from today?c. What is the expected price per share for Thomas Company three years from today?d. What is the expected price per share for Thomas Company ten years from today