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A share of stock pays a constanA share of stock pays a constantly growing (end-of-the-year) dividend. If the stock sells for $18.7/share today, the dividend
A share of stock pays a constanA share of stock pays a constantly growing (end-of-the-year) dividend. If the stock sells for $18.7/share today, the dividend yield is 8.4%, and the total return required by investors (in the stock) is 0.32%, at what price should each share sell in exactly 6 years (at t=6).tly growing (end-of-the-year) dividend. If the stock sells for $18.7/share today, the dividend yield is 8.4%, and the total return required by investors (in the stock) is 0.32%, at what price should each share sell in exactly 6 years (at t=6)
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