Consolidated Edison, Inc. (Ticker: ED), the largest energy utility in the New York City Area, has paid a constant annual dividend of $2.40 a share for the past 15 years. However, earlier today, the firm announced their dividend will increase next year by 10.00 percent and will stay at the level through year 3, after which time the dividends will increase by 2.00 percent annually. You may assume that the required return on ED's stock is 12 percent.
- What is the current value per share?
- Report your answer as a number rounded to two decimal places.