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Conroy Consulting Inc has a current dividend of $2.5. Shareholders require a 15% return. Although the dividend has been growing at a rate of 30%

  1. Conroy Consulting Inc has a current dividend of $2.5. Shareholders require a 15% return. Although the dividend has been growing at a rate of 30% per year in recent years, this growth rate is expected to last only for another 2 years after which the growth rate stabilizes at 7%.

Suppose the actual market value or price is $85.50, what would be the expected rate of return to investors of Conroy Consulting stock?

Forecast the expected value or price of this company (ceteris paribus) for this next 10 (ten) years starting from today (P0); that is P0 to P10.

Estimate the expected annual dividend yields, capital gains yields and the annual total returns, the 10-year average return, its standard deviation (i.e., absolute risk) and coefficient of variation (i.e., relative risk and risk per unit return).

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