rate positively ..
price today | Dividend in year 1/(required rate - Growth rate) | ||||
Dividend in year 1 = | 28.2*(9.2%-6.1%) | ||||
0.8742 | |||||
Stock price 5 year from now = Expected dividend in year 6/(required rate - growth rate) | |||||
Stock price in 5 year = | 0.8742*(1+6.1%)^5/(9.2%-6.1%) | ||||
37.92 | |||||
answer = | 37.92 | ||||
A stock is currently priced at $28.2. Its dividend is expected to grow at a rate...
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