Posted: February 12th, 2016

Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. Yesterday,

Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. Yesterday, the firm annunced the dividend will increase next year by 10 percent and will stay at that level through year three, after which time the dividends will increase by 2 percent annually. the required return on the stock is 12 percent. what is the current value per share?