1 Washington Inc. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year indefinitely. If investors require a return o f10.5% on the company's stock, what is the current price? What is the price in three years? In fifteen years?
1 Washington Inc. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year indefinitely. If investors require a return o f10.5% on the company's stock, what is the current price? What is the price in three years? In fifteen years?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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