Problem

Stock Values. Patience, Inc., just paid a dividend of $2.35 per share on its stock. The di...

Stock Values. Patience, Inc., just paid a dividend of $2.35 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. If investors require an 11 percent return on this stock, what is the current price? What will the price be in three years? In 15 years?

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Solutions For Problems in Chapter 7