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Fist Bumps Unlimited, a party supply store, just paid a dividend of $1.50, and is expecting to pay dividends of $1.57 at the end of
Fist Bumps Unlimited, a party supply store, just paid a dividend of $1.50, and is expecting to pay dividends of $1.57 at the end of year 1, and $1.65 at the end of year 2, based upon a constant dividend growth rate of 5%. The equity cost of capital is 8%. What should the stock price be at the end of year 1? $52.50 $50.00 $57.88 $55.00
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