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Bridge & Associates' stock is expected to pay a $.75 per share dividend at the end of the year. The dividend is expected to grow
Bridge & Associates' stock is expected to pay a $.75 per share dividend at the end of the year. The dividend is expected to grow 25% the next year and 35% the following year. After t=3, the dividend is expected to grow at a constant rate of 6% a year. The company's cost of equity is 10%. What is the expected price of the stock 10 years from today ? a) 47.58 b) 49.45 c) 50.43 d) 53.46 e) 55.10
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