Question
$14.00 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.50% per year.
$14.00 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today?
Select the correct answer.
a. $16.17
b. $16.71
c. $16.44
d. $16.98
e. $15.90
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
