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An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 3 Dividend $1.92 $2.44
An analyst has been following American Dream stock. He projects the following dividends for the next three years:
YEAR | 1 | 2 | 3 |
---|---|---|---|
Dividend | $1.92 | $2.44 | $3.09 |
The analyst notes that American Dream stock has a required return of 9.75%. The analyst projects that dividends will grow at a constant rate of 5.00% per year after year 3.
What is the current price of the stock if his assumptions are correct?
Answer Format: Currency: Round to: 2 decimal places.
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