hat is the current price?   Current price           $    What will the price be in three years?   Stock price           $    What will the price be in 14 years?   Stock price           $

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 6P
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The Starr Co. just paid a dividend of $1.10 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Investors require an 11 percent return on the stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)

 

What is the current price?

 

Current price           $ 

 

What will the price be in three years?

 

Stock price           $ 

 

What will the price be in 14 years?

 

Stock price           $

 
 
 
 
 
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