Question

The next dividend payment by Savitz, Inc., will be ______ per share. The dividends are anticipated to maintain a growth rate of ______ percent forever. The stock currently sells for ______ per share.

1) 1.40, 6, 25
2) 1.40, 6, 30
3) 1.50, 5, 25
4) 1.50, 7, 25

Answer 1

The next dividend payment by Savitz, Inc., will be $1.50 per share, with a growth rate of 5% forever. The stock currently sells for $25 per share.

Step-by-step explanation:

To determine the next dividend payment and growth rate for Savitz, Inc., we need to analyze the given options. The correct answer is the one that matches the information provided in the question.

From the given options, option 3) 1.50, 5, 25 matches the information provided. This means that the next dividend payment will be $1.50 per share, the dividends will maintain a growth rate of 5% forever, and the stock currently sells for $25 per share.