Question
Axel Records' stock currently sells for $100.00 per share. The dividend is projected to increase at a constant rate of 5.00% per year. The required
Axel Records' stock currently sells for $100.00 per share. The dividend is projected to increase at a constant rate of 5.00% per year. The required rate of return on the stock, ks, is 7.00%. What is the stock's expected price 3 years from today?
The answer is 115.76, but if you can show how you got the answer that would be awesome. Thanks
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
