12. P8-1 Stock Values [LO1] The Jackson-Timberlake Wardrobe Company just paid a dividend of $1.56 per share on its stock. The dividends are expected to grow at a constant rate of 7 percent per year indefinitely. a. If investors require a return of 12 percent on the company's stock, what is the current price? b. What will the price be in 16 years?