Question
1.Vandelay Industries just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 6%
1.Vandelay Industries just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 6% per year indefinitely. If investors require a return of 11% on the stock, what is the current price?
a.What will be the price in 3 years?
b.What will it be in 16 years?
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Corporate Finance Core Principles And Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
6th Edition
1260571122, 978-1260571127
