Newport Corporation's common stock currently sells for $160 per share. Newport just paid a dividend of...
Newport Corporation's common stock currently sells for $160 per share. Newport just paid a dividend of $10.40 and dividends are expected to grow at a constant rate of 5 percent forever. If the required rate of return is 10 percent, what will Newport Corporation's stock sell for one year from now?
a. $115 b. $168 c. $189 d. $2200
Homework Answers
Expected price=Current price*(1+Growth Rate)
=160*1.05
which is equal to
=$168
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